Should I pay off my mortgage or pay off my credit card debt first?

Our minimum monthly mortgage payment is $1,539.64. We owe $204,020 on a mortgage with a rate of 3.8750%. Our total credit card debt is $34,000 with an average interest rate of 12%. When we have extra funds each month, should we use them towards the paying off the principal on our mortgage or towards paying off our credit cards?

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November 2017

You will want to pay the highest interest debt first. In this case that would be the Credit Cards.  Also you get a tax deduction for your mortgage, which makes that debt even cheaper to keep. 

Make sure if you can to put away some money for retirement especially if you have an employer match. That is like free money.

That is a big amount of Credit Card debt, you may want to consider talking to a debt settlement attorney they may be able to negotiate a faster pay off.

November 2017
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November 2017