Should You Pay Off Your Student Loans or Your Credit Card First?

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Unless you’re lucky enough to win the lottery or inherit a fortune, you know the struggle of trying to save enough for all your financial goals. You’ve got the basics like food, housing, and healthcare. Then there’s all the associated costs, like utilities and insurance. And you probably want to buy yourself something nice once in a while, too.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. It’s easy to find yourself in over your head, even if you try to manage your money responsibly. This is especially true for those who graduate with a mountain of student debt. It’s understandable to want this off your back as quickly as possible, but it’s important to consider all your debts, including credit card debt, to figure out the best way forward.Credit card debt should probably come firstEvery situation is unique, but generally speaking, it’s best to prioritize paying off your credit card debt over your student loans. That’s because credit cards tend to have high annual percentage rates (APRs) — sometimes over 20%. This can cause your balance to swell alarmingly.Student loans charge interest too, but the rates generally aren’t as high, especially for federal student loans. Direct loans for undergraduate students right now only charge 6.53%. You also get a specified loan term with predictable monthly payments, whereas credit card debt could go on indefinitely if you’re only making the minimum payment.This isn’t to say that you should completely ignore your student loan payments while paying off credit card debt. Doing that would put you into default. But don’t pay extra toward your student loans while paying off your credit card debt. Once your credit cards are paid off, you can put any extra cash you have toward your student loans.How to do itThere are a few tried-and-true ways to tackle credit card debt. First is to pay the minimum balance on each card and then put any extra money you have toward the card with the highest interest rate first. This helps you pay off your balance more quickly than you could if you divided your money evenly among all your cards.You could also open a balance transfer credit card. These cards have a 0% introductory APR period for a certain number of months, which temporarily halts your balance’s growth. Check out some of our favorite balance transfer credit card offers to start your journey out of debt today.Personal loans are another option if you prefer a regular payment, like your student loans have. Interest rates on personal loans tend to be higher than that on student loans, but they’re better than credit card debt. It’s best to get quotes from a few personal loan companies to see which offers you the best rate before committing. Start here with our list of the best personal loan providers.Once you’ve got a strategy in place, keep chipping away at it. It could take months or even years to get out of debt, but stick with it. Remember to celebrate your small wins along the way to keep yourself motivated.In the meantime, make at least the minimum payment on your student debt and choose the repayment plan that offers you the lowest monthly payment. This will give you the most extra cash to put toward your credit card debt.After you’ve paid off your credit card debt, begin making extra student loan payments. Just follow up with your loan provider to make sure it applies the extra money to your principal, rather than your next payment. This will help you get out of debt in the shortest amount of time.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Unless you’re lucky enough to win the lottery or inherit a fortune, you know the struggle of trying to save enough for all your financial goals. You’ve got the basics like food, housing, and healthcare. Then there’s all the associated costs, like utilities and insurance. And you probably want to buy yourself something nice once in a while, too.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

It’s easy to find yourself in over your head, even if you try to manage your money responsibly. This is especially true for those who graduate with a mountain of student debt. It’s understandable to want this off your back as quickly as possible, but it’s important to consider all your debts, including credit card debt, to figure out the best way forward.

Credit card debt should probably come first

Every situation is unique, but generally speaking, it’s best to prioritize paying off your credit card debt over your student loans. That’s because credit cards tend to have high annual percentage rates (APRs) — sometimes over 20%. This can cause your balance to swell alarmingly.

Student loans charge interest too, but the rates generally aren’t as high, especially for federal student loans. Direct loans for undergraduate students right now only charge 6.53%. You also get a specified loan term with predictable monthly payments, whereas credit card debt could go on indefinitely if you’re only making the minimum payment.

This isn’t to say that you should completely ignore your student loan payments while paying off credit card debt. Doing that would put you into default. But don’t pay extra toward your student loans while paying off your credit card debt. Once your credit cards are paid off, you can put any extra cash you have toward your student loans.

How to do it

There are a few tried-and-true ways to tackle credit card debt. First is to pay the minimum balance on each card and then put any extra money you have toward the card with the highest interest rate first. This helps you pay off your balance more quickly than you could if you divided your money evenly among all your cards.

You could also open a balance transfer credit card. These cards have a 0% introductory APR period for a certain number of months, which temporarily halts your balance’s growth. Check out some of our favorite balance transfer credit card offers to start your journey out of debt today.

Personal loans are another option if you prefer a regular payment, like your student loans have. Interest rates on personal loans tend to be higher than that on student loans, but they’re better than credit card debt. It’s best to get quotes from a few personal loan companies to see which offers you the best rate before committing. Start here with our list of the best personal loan providers.

Once you’ve got a strategy in place, keep chipping away at it. It could take months or even years to get out of debt, but stick with it. Remember to celebrate your small wins along the way to keep yourself motivated.

In the meantime, make at least the minimum payment on your student debt and choose the repayment plan that offers you the lowest monthly payment. This will give you the most extra cash to put toward your credit card debt.

After you’ve paid off your credit card debt, begin making extra student loan payments. Just follow up with your loan provider to make sure it applies the extra money to your principal, rather than your next payment. This will help you get out of debt in the shortest amount of time.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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