So I paid off my credit card debt this weekend (yay me) and I'm thinking through which debt to tackle next. I will be applying the credit card payment of about $500 to the next debt.
The first is student loans at about 6.8%, 15K and a monthly payment of $289. I've paid all the interest already at the beginning of the loan and will be paying just principal with both payment and additional.
The second debt is a car at 1.2%, 24K and a monthly payment of $525. I'm still paying interest although the additional will go towards principal only.
Financially it makes sense to pay off the student loans because of the higher interest rate and quick win, however, I'm leaning towards tackling the car. The psychological win of reducing the greater debt with higher payments and having those higher payments to apply to the student loan appeals to me. I realize this goes against all conventional wisdom. My question is this: Has anyone gone for the psychological win over financial win in their quest to payoff debt?
TL;DR; Is it worth it to go for a psychological win in paying off debt over a financial one even if that win defies conventional logic?
Submitted November 12, 2017 at 10:16AM by xyntiacat http://ift.tt/2zR6agu
