SUZE ORMAN: What's the interest rate of your student loan debt?
MIRIAM: Well, they vary. I have some that are at 2 and 3 percent from my undergrad. And some that are, like, at 7 and 8 percent. And when I tried to consolidate them, they - the company I was working with wanted to do it all at the higher interest rate.
SUZE ORMAN: And just so I know, the interest rate on your credit card debt?
MIRIAM: It's about 18 percent.
SUZE ORMAN: In this case you would go - 'cause it's such a little amount of debt - get rid of the 18 percent debt. It's non-tax deductible; credit card debt is not tax deductible. Depending on how much money you're making, if you're making under $50,000 a year...it's tax deductible up to $2500 a year. Pay off the higher student loan interest rate first, stretch the one that's 2 or 3 percent for as long as you can, girlfriend. 'Cause a few years from now you're gonna be looking' back goin', "Wow, all I'm paying is 2 or 3 percent."
Next: Suze Orman's All Star Action Plan for this week.