Personal Finance (Not Investing) • Which debt should I tackle first?

I want to start getting aggressive with my mid-level interest debts. However, I'm waffling over which loan to start getting aggressive with first. I wanted to ask the forum of people smarter than myself which one to tackle first. Both loans have nearly equal amounts of principal left:

HELOC: 10.24 %

pool loan: 8.49 %

The HELOC has a higher interest rate and payment, but that interest is tax deductible, which is the cause of my indecision. I've seen terms like "effective interest rate," but I don't understand the math behind calculating that. Which loan should I start aggressively paying down first?

Or, am I overthinking this, and all debt is bad, so whichever one I choose to get aggressive with is a good idea?

the interest is only tax deductible if you itemize deductions.

do you?

if so, what is your marginal tax bracket?

Statistics: Posted by Dabeachi — Fri Mar 15, 2024 7:10 pm — Replies 4 — Views 226