Should I Pay Credit Card or College Debt First?

Should I Pay Credit Card or College Debt First?

One of the hardest questions to answer is whether you should pay credit card debt or college debt first. This might be a question of whether to delay one of these debts or pay both of them simultaneously. However, this could also mean making larger payments to one debt than the other. Consider talking to a Tullahoma bankruptcy lawyer if you have concerns about bankruptcy.


When comparing credit cards and student loans, the national credit card debt seems to have decreased while student loan debt has increased. This means more people are finding themselves struggling with student loan debt compared to credit card debt. There are several reasons why this might be happening.

For one, many people are encouraged by financial experts to pay off credit card debt first. The main reason for this is that credit cards tend to come with higher interest rates compared to student loan interest rates. While student loans tend to be higher in terms of the total principal balance, credit card debt tends to be lower.

This means credit cards could be paid off faster. Paying off credit cards faster is much more beneficial since credit cards have higher interest rates. Putting off payments on credit cards will make the total credit card debt build faster, whereas student loan debt may not increase as quickly due to lower interest rates.

Most federal student loans have interest rates below 10%, significantly lower than many interest rates for credit cards. At the same time, monthly payments for student loans tend to be much higher than monthly credit card bills. This means paying off a student loan will take significantly longer than paying off credit card debt.

Ultimately, the decision comes down to your preferences and unique financial situation. Some people may benefit more from paying off student loans first while others may benefit from paying credit cards off first. Paying off both simultaneously is a third option.


To pay student loan debt faster, start by taking advantage of any extra money you have. Instead of spending money blindly, spend your money with strategy. Consider taking a portion of your savings or tax return and putting that toward a student loan payment. Any student loan refunds can be paid back to the student loans to reduce overall debt.

You could pay off student loan and credit card debt faster by trying debt management tips. Budget your income and financial assets by subtracting monthly expenses from monthly income to see where you can cut spending. Follow rules of thumb like:

  • Pay extra on monthly payments whenever possible
  • Try the snowball method for debt
  • Explore options for resolving debt like consolidation
  • Contact lenders if your financial circumstances change


You may not have to face bankruptcy alone. Start by contacting us at Tom Bible Law today by dialing (423) 690-7712 for a consultation with our dedicated Tennessee bankruptcy attorneys. Our legal team might be able to help you overcome your financial problems by looking at the best bankruptcy options. We can be found in the Tennessee cities of Chattanooga and Tullahoma.

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