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Hello Folks,

I have broken down. I have seen the reality of my spending ways and now it's time to clean up my mess.

Here is my situation:
1) I can scrounge together $5500 to spend by the end of the next month to pay down debt.
2) Each month I can pull together $2000 to pay off debt.

Here are my debts:
1) Credit Card:
- Total: $568
- Interest: 16.90%
- Monthly: $43/mo
2) Car Loan:
- Total: $14,382.10
- Interest: 3.99%
- Monthly: $265/mo
3) Student:
- Total: $15,448.68
- Interest: 3.25%
- Monthly: $212/mo
4) Credit Card:
- Total: $3739.74
- Interest: 0.00%*
- Monthly: $0/mo
- *0% interest until Until April 2016 then 16.9%
5) IRS:
- Total: $5593.00
- Interest: 0.00%
- Monthly: $558/mo
6) New Heater:
- Total: $9038.00
- Interest: 0.00%
- Monthly: $150/mo

I have $6,000 set aside in savings for emergency use only or helping with security deposit if necessary. However I'm open to some creativity with it here.

I have $3,000 in car maintenance that's about to go on a credit card since I don't currently have the cash put together. It will take a month after the payment is made to start accruing interest.

Currently I am torn between going after the credit card/car maintenance and the IRS with the $5500 I can scrounge together. The money I owe the IRS technically has something negligible like $13 total interest on it. I have a payment plan with the IRS for $558 and it will be paid off by the end of the year. While I know that paying off the credit card or the pending car maintenance is the most logical choice, interest wise, the idea of freeing up $558 a month almost immediately seems like it merits value as well.

That said... the IRS will be paid off by the end of the year and my eagerness might be clouding my judgement. The flexibility would be nice, but I could always wait it out and go after the credit cards first.

The pros of paying the IRS first:
- Serious Government Branch I want to stay on good terms with
- Frees up $558 a month

The pros of paying credit card/car maintenance first:
- Less total money paid over time

I'm sure this isn't the most unique conundrum in the world but I'd love your insight.

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