Which debt should I pay off first after clearing my credit cards?

S

SWORDWEEDFOX

New Member
Hey everyone, I’m new here! I’ve managed to pay off my credit cards. Now I need to figure out what to focus on next. So which would you choose, and why?

$8,500 student loans (5.5%)
$10,000 loan from family (0%)
$20,000 home equity loan (6.9%) (lien on the house)
$25,000 solar panel loan (7.9%)
 
I'd start at the top and work my way down. But I'd pay off the first two ASAP, then build up a 3 6 month emergency fund before moving on to the last two debts since I'd treat those as part of the mortgage right now.
 
Maybe I would do another home equity, refinance, or personal loan for a cheaper rate. I would use it to pay off the solar and equity loans. Then I would tackle whatever has the higher rate.

If you can't get a new loan under 6%, tackle solar first, then home equity, then student.

No offense to family, but I am taking advantage of the 0% until debts are gone.
 
I might take out another home equity loan, refinance, or personal loan at a lower rate to pay off the solar and equity loans. Then I'd go after whatever has the higher interest rate. If you can't get a new loan under 6%, pay off solar first, then home equity, then student loans. No offense to family, but I'm using the 0% deal until the debts are gone.
 
First off huge win getting those credit cards paid off honestly, that’s the hardest part for most people.

So from what you listed, there’s a couple ways to approach this depends on your goal:

Pure numbers? then highest interest first.
Risk? anything tied to the house usually gets prioritized.
Relationships? some people clear family loan s earlier.

See, there’s no one size answer here because it’s about what you want your whole situation to look like, not just the math.

If you want, I can help you map out the smartest order based on your goals, that is.
 
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