Is there a general rule of thumb about what debt should be paid off in
what order? And where do long-term goals fit in?
For example, if you have:
debt: credit cards, home loan, auto loan
long-term goals: college fund(s), retirement fund, emergency fund
Assume your credit card interest rate is larger than your mortgage
interest rate.
And assume you can only put money in one at a time (a tad unrealistic
I know, but for the sake of argument let’s assume you don’t have
enough to do all at once).
How would you order, from “Pay off or Invest in First” to “Pay Off
Last or Invest in Last”?
Thanks for playing!
Stephanie