<prompt> Human: Hello,I wanted to get rpersonalfinances perspective on this. I have been trying to reel in my expenses and have come across a little problem. I am confused as to which tactic would benefit me the most. My goal, of course, is to be debt free. Car: 6k balance5 interest240 moLoan:5k balance8.7 interest50 moKeep in mind that the loan is just a fraction of what I owe on student loans in total. Would you pay off the car and save the extra 240 to put down towards student loan principal or would you pay off the loan and pocket 50mo while continuing to pay off the car for another 2 years or so. Thanks for your time.Edit: Thank you to everyone who took the time to respond! After reading all of the comments I have decided to shoot for the car loan first.  <response>: Personally Id go against the grain and pay off the car. If I lose my job the car is an asset that can be taken away, the student loan education cant. And I like the psychology of having that extra 240 a month freed up. It feels very good.But number-wise the student loan makes more sense. 