Should I pay off my student loans first or my 4% car loan?

"I have $50,000 in student loans and a 4% car loan on a balance of $20,000.

Should I pay off my car loan first, or should I put that money toward my student loan principal?"

Answer
“There are two schools of thought here.
The first is to pay off your high-interest debt first. If you want to pay some principal, apply it to whichever loan has a higher interest rate.
The other idea is to pay off the smaller balance first. This is a good practice if you have problems with cash flow and you want to get rid of one of your monthly bills.
You’ll have to decide which is best for your needs.”
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Eric Schad
Answered on Jun 09, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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