A man has debt, he comes into a little bit of money... how best should he spend it? A man has debt. 6k in student loans (5%) 19750k in credit card debt (ranging from 8-10 % interest) 15500k car loan (car is worth 12k) Man gets 25k at 2% interest. Man thinks he could get away with no car for 6 months, saving him 600 a month. Should man pay off credit cards & student loans and continue to drive his car or Should man pay some student loans, sell car (take the lose) and pay off credit cards? What makes the most financial sense. Ultimately regained financial freedom and the ability to go back to school is the goal. Though eventually another car will be needed.