I currently have enough cash to pay off an investment property or my credit card debt. Is it better to pay off my credit card debt which will free up 725 a month but not have an asset paid off, or pay off my smallest rental loan and will free up 475 a month and have as asset paid off valued at 60,000. Any thoughts or suggestions will be helpful. Thank you for your time. --35.146.xx.xxx

What is the interest rate on each? --73.19.xxx.xx

What’s financially better and what feels better are considerably different. I have paid off properties when it made much more sense to invest the money. --162.204.xxx.xxx

Pay off the house. You’ll be less likely to borrow it again. --24.152.xxx.xx

If you fail to pay your credit card debt, minimum payments, they can tack along fee's, sky high interest rates, etc., but they have to sue you in court....first. --107.155.xx.xx

Do both--pay the credit card off first and then take the $ 725 freed up and pay extra toward the mortgage and pay it off early. Once both are paid off, enjoy $ 1200 free cash flow. --23.28.xx.xx

--162.204.xxx.xxx

--162.204.xxx.xxx

I think exactly the same as Gkarl --72.218.xx.xxx

Most likely paying more towards principal than interest on the house loan. So I'd pay off credit cards and enjoy that freedom, Having more discernment on CC debt on the future. --172.59.xx.xx

Would have been smarter of me to do a consolidation type loan to pay off the two cards we had, but we got thru it by not living off the extra CF. --47.248.xxx.xxx

By the way, have you ever calculated the actual cost of something you purchased with a CC after all the finance charges. Its quite eye opening. --72.227.xxx.xx

Credit cards have high interest rates where here I can use bank line of credit to pay off credit cards where line of credit has lower interest rates. If possible every week make a payment where even have a $100 dollars then that will pay off line of credit in shorter period of time. Then once mortgage is paid off can use those money that was used for mortgage payments to completely pay off debt. This month bought some DIY two can spray foam kits where have a approximately $900 on one credit card where at the end of month will pay off quickly. Having a line of credit is helpful if need to replace a furnace, roof or major expenditure that has to be done. With spray foam DIY kits do not work unless close to room temperature where decided to complete attic so there is no moldy fiber glass insulation in attic where soon going to transfer station to dump 8 bags as this hazardous waste. A Canadian dump will not accept fiber glass insulation where if take to transfer station will be sent to Ann Arbour Michigan. Tonight not using high efficiency gas furnace as when it cools off at night the house inside temperature does not drop. Some nights the outside temperature can drop to 3 degrees Celsius which is 3 degrees above freezing where in Celsius 0 is freezing and 100 is boiling temperature. So it is possible where discuss with bank or credit union for a line of credit. --216.110.xxx.xxx

Lead a horse to water and all that I guess. --47.248.xxx.xxx

--67.140.xx.xxx

Cards --99.23.xxx.x

And most of the country makes their purchases that way and don't think about it. I don't understand that. --73.19.xxx.xx

For personal spending, groceries, gas, clothes, date night and such, I suggest putting it on a credit card, and paying it off entirely more than once a month. At least One of my cards limits the number of payments in a month, so you might need to pay once a week, or every other week. To have credit card debt that is being charged interest for personal spending is pure folly, in my opinion. Thus, if you cannot pay the personal debt off before interest is charged, it is time to really tighten the spending until the personal spending cards can be interest free. Credit card debt for buying and rehabbing rentals can be very worthwhile, IF one watches the rates carefully. But, one still must be careful; it is easy to say, "Sure, sure, we can upgrade that now" if the debt is going on a credit card. Sometimes worth it, sometimes not, when it comes to the rental business. --72.135.xxx.xx

BRAD --68.45.xxx.xxx

BRAD --68.45.xxx.xxx

--71.63.xxx.xxx

Sam, what did you decide? Inquiring minds want to know. --172.59.xxx.xxx

Not as much of a concern now, but still crazy that it is that high. --47.248.xxx.xxx

Brad is incorrect. scores are also based on utilization of total credit available. so it may NOT behoove you to cxl a card. the average is important. an individual card may be higher but so long as your other cards are lower to offset then average is down. I run my cards at 15%. To answer your question. pay down the card(s). the mortgage is fixed and at a lot lower rate than the cc. What you need to consider is the paid off mortgage is dead money. until you sell. That is why I will never accelerate pay-offs of my home or rentals. At 2.75-3.25 rates I have it makes no sense to zero them out. I can buy a Marcus cd at 4.15 9 mos and still come out ahead on the price of my $. --104.28.xx.xxx

Even if you’re using a zero % credit card now there will be a balloon payment coming soon. --68.193.xxx.xxx

That's a smart Hoosier right there! --47.248.xxx.xxx