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Hello Fools,

Just a quick question:

In a debt reduction plan, should you pay-off secured or unsecured debt first, excluding mortgage?

My wife and I currently have 2 cars that have a principal balance of $40,000 and student loans with a principal balances amounting to $113,000. These loans have about the same interest rate 8.25%. My guess is it is best to get rid of the secured debt first since we have options to to put-off student loans as a result of layoffs, debt problems, etc.

What do you think? Any feedback will be greatly appreciated.
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