Asking Ai for financial advice.
Question: I have some debt that I need to pay off. 1. Credit card one $8000 at 19%
2. Car loan of $13000 at 4%
3. Credit card two $3000 at 8%
4. Student loan of $15000 at 3%
5. Mortgage $265,000 at 2.5%
What would be the best order to pay off these debts?
Answer: The best order to pay off these debts is known as the "debt avalanche" method, which prioritizes paying off the debts with the highest interest rates first. Using this method, the order you should pay off your debts would be Credit card one ($8000 at 19%) Credit card two ($3000 at 8%), Car loan ($13000 at 4%), Student loan ($15000 at 3%) Mortgage ($265,000 at 2.5%) Focusing on the highest interest rate debts first will save the most money in interest charges over time. Another approach is "debt snowball," which prioritizes paying off the smallest debts first to build momentum and motivation. You can choose whichever approach works best for you.
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