 TITLE: Which Debts Should I Pay Off First? CONTENT: Should You Pay Off Installment Loans or Revolving Credit First?\n---------------------------------------------------------------\nDebt is usually broken down into two groups: installment loans and revolving credit. Here's how each works:\n*   **Installment loans**: Installment credit comes in the form of loans that have equal monthly payments—often called installments—over a set repayment period. For example, when you get a 30-year mortgage loan, you get a lump sum to cover the cost of the sale, then the loan is paid off over that time. So you know exactly what you're going to pay every month and when the loan will be paid in full.\n*   **Revolving credit**: The alternative to a lump-sum loan amount, revolving credit accounts give you a line of credit that you can draw on, pay off and use again. Credit cards and lines of credit are considered revolving credit. Lines of credit typically have a draw period, followed by a repayment period, similar to an installment loan. With credit cards, however, there's no set repayment period and your monthly payment is based on a percentage of your balance.\nThe decision of which type of debt to pay off first depends on a few things, so it's important to understand the full extent of your situation. END