Line of Credit vs Credit Card interest. Which would be better to pay off first?

The past co-owner of the company I worked for ran up the line of credit, and the business card to massive balances. We have about $100,000 on the LOC and $20,000 on the credit card. The line of credit is costing us about $500 a month in interest, and the credit card is costing us about $300 a month in interest. Which would be better to pay off first, and why?

Go with the flow2011-03-21T07:43:46Z

Favorite Answer

Whichever one has the highest interest rate.
That is the rule.
It does not matter which one you are paying more per month in interest charges.
Pay off the one with the highest interest rate first..