<prompt> Human: Note: my annual salary is around 110k - take home is about 5-6k a month.While living with my parents now, my thought was to save money for a down payment on a house. But when I got pre-approved for a home loan my maximum was 370K, which cant buy shit in the Bay Area. The mortgage lender told me that my income was sufficient but my debt was holding me back from getting a decent loan. My question is which part of my debt should I be trying to pay down first as my grad student loans are a massive chunk with a high interest rate, but will take me a long time to pay down but my car is a large monthly payment but lower interest rate.Car loan: 20,000 2.9Monthly payment:370Undergrad student loan: 16,000 2.88Monthly: 131Grad Student loan 1: 83,000 7.9Monthly: 549Grad student loan 2: 45,000 6.8Monthly: 256Any advice would be greatly appreciated! Thanks!  <response>: Those two grad school loans are what are screwing you hard, especially that 83,000 loan at 7.9 interest. Pay that thing off as quickly as possible. If you can take big chunks out of the principal with separate one-time payments, do it. Even if you cannot pay it off, reducing the principal balance will save you a lot of money because it will reduce how much interest you are accruing. Go look at your monthly payment break down for that loan and check out how much of your monthly payment goes to the principal and how much goes to interest. Look at both grad student loans actually. Are you on a graduated payment plan? Because those monthly payments on those grad school loans seem way too low. Every dollar that goes to paying interest is getting flushed down the toilet. If you made payments on those two loans for all 12 months last year, look at the 1098-E forms for those loans. Those will show you how much in interest you paid on each loan over the course of the year. All that money? Down the toilet.The car loan and the undergrad loan are chicken feed compared to the grad school loans. Especially the car loan. Dont listen to the idiots in this thread telling you to sell your car. The bank doesnt care about your car loan. Its a perfectly standard car loan with a low interest rate and low monthly payment compared to your monthly income. Theres no reason for you to live like a starving student when your take home is 5-6k a month. Also if you defaulted on the car loan, the finance company would just repo your car. If you default on the student loans, your wages can get garnished and thats what the bank cares about. Plus, the interest you are paying on the car loan and the undergrad loan is fairly minuscule. 