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I am trying to become debt free. I have $20,000 to spend…

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I am trying to...

I am trying to become debt free . I have $20,000 to spend right now. Would it be smarter to pay off one high interest credit card that will save me$450/mo or pay of a credit card with a smaller balance and pay off my truck which would save me $950/mo?

Submitted: 3 months ago.Category: Finance
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3/22/2018
Financial Professional: PDtax, CPA, MBA replied 3 months ago
PDtax
PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 5,085
Experience: Tax professional and business consultant for 35 years.
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Financial Professional: PDtax, CPA, MBA replied 3 months ago
I've seen different theories about the hierarchy of debts to retire first. The highest cost debt first, the lowest balance debt first, a fixed sum to all debts. There's value in all of them, but I'll tell you what I like.Pay off the smallest balance first. The accomplishment will feed the effort early, and people generally respond to positive results with continued effort.Debt service reduction is a secondary consideration to you, since you didn't mention it. It's how a lot of home refinancing sell the notion to people.One thing to consider is a lump sum settlement of some of your debt. Call your credit card company you owe 10k to and offer them 9k to full pay. That stretches your buying power.Thanks for asking at just answer. Positive feedback is appreciated. I'mCustomer
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