BRIDGEPORT, W.Va (WDTV) - Question: "We have several credit cards and small loans that need paid off. We are now in the position to pay extra each month. How should we go about paying these off?"
Answer: (John Halterman, Beacon Wealth Management) "I like what you're saying because I love to see credit cards reduced. Here's what I would do, number one I would list out all your credit debt from the highest to the lowest. Then the second thing I would do is list out the interest that you owe on all of those.
"Anything that has high interest and revolving debt such as credit cards I would try to pay those off first. Especially if they are smaller ones because that way you can eliminate those and you eliminate how many different creditors you owe to.
"The next thing I would look at is this high debt, and say okay of these which are car loans versus credit cards versus maybe student loans. the thing I always tell people is don't be in a rush to pay off your car loans, because car loans are at very low interest today and I would rather see you take that money and either build up an emergency fund or even invest it where you could potentially make more money.
"Anything that you have high debt or high interest, definitely try to pay that off as quickly as possible. That way you're back on the path to financial freedom and less stress in your life."