Wife Wins

Dave defers to the wife for two reasons when it comes to which of two equal debts to pay off first.

QUESTION: Pat just started Dave’s plan and has $39,000 in debt. Two of his smaller debts (his car and a credit card) are close to the same amount. They are about $7,500 each. He wants to attack the car payment first, but his wife wants to attack the credit card first. They make $55,000 a year. Dave goes with the wife here, for a particular reason.

ANSWER: When the two debts are equal, I would attack the higher interest rate first, which is the credit card here. But in this case, go after the credit card first because it will fire her up and get her more on board to finish the plan.