Loans · Side-by-side plans
Should I pay off credit cards or student loans first?
Short answer
Usually the credit card. At 22.36% against a 6.5% student loan, card-first saves about $2,521 here and finishes 3 months sooner.
With $800 a month, card-first is debt-free in May 2031.
The example pairs the average card balance with $30,000 of student loans at 6.5% on a 10-year schedule. Minimums total $530, leaving $270 a month extra.
| Debt | Balance | APR | Minimum |
|---|---|---|---|
| Credit card | $6,610 | 22.36% | $189 |
| Student loan | $30,000 | 6.5% | $341 |
| Total | $36,610 | $530 |
Bars drawn to scale. Minimums are held fixed, there are no new charges, and the first payment is next month.
The order each plan pays them off
Extra to the card first:
- Credit card paid off in March 2028
- Student loan paid off in May 2031
Extra to the student loan first:
- Credit card paid off in August 2031
- Student loan paid off in August 2031
Try one of your own debts
What makes student loans different
Federal student loans come with options card debt doesn't have, such as income-driven repayment, deferment and forbearance, and some forgiveness programs. Paying a federal loan off early means you may never use them, which is another reason the card usually goes first.
Private student loans have fewer of those protections. If yours is private and its rate is close to your card's, the order matters less.
Keep both current
Pay at least the required amount on every loan. The extra goes to one debt at a time; once the card is gone in March 2028, its payment rolls onto the student loan.
Have more than one debt?
Add your cards, loans and mortgage to see one debt-free date for all of it, and which to pay first.
Common questions
Is the student loan interest deduction a reason to keep the loan?
The deduction lowers the after-tax cost a little for some borrowers, within income limits, but rarely enough to matter against a card at 22.36%. A tax professional can tell you what it is worth for you.
What if I only pay minimums?
It takes 10 years and about $15,047 in interest, because the student loan runs its full 10 years.
How this payoff estimate is calculated
The strategy plans use a total monthly budget of $800 across the debts listed above. Minimum payments stay fixed. Extra money and payments freed by a cleared debt are applied to the remaining debts in the selected order. The minimums-only comparison does not roll freed payments forward.
Each month, interest is calculated as the opening balance × APR ÷ 100 ÷ 12, then the payment is subtracted. This repeats until the balance is paid off. Total interest is the sum of those monthly charges; displayed dollar amounts are rounded.
Dates assume the first payment is in November 2026. Dates move forward with the calendar; this does not change the number of payments for the same inputs. There are no new charges, fees or rate changes in these examples. Rates are illustrative inputs, not loan offers or a quote for your account.
Actual statements can differ because of payment timing and daily interest. The CFPB explains how credit card companies calculate interest. See our debt payoff glossary for definitions.
Written and reviewed by Todd K. Ballenger. Read our editorial policy.
Educational estimate only, not financial advice. Interest here is charged monthly at APR ÷ 12; card issuers use your average daily balance, and real fees, rate changes and new charges will change your numbers. Disclaimer.