Im not sure I understand her thinking either. The car payments and the credit card debt are the same thing. Theyre both debt payments, and youre being charged interest on both of them. The only difference is that one is attached to a car and ones not.
But wait! There’s more! If you pay off your credit card first, all that available credit improves your credit score, enabling a lower interest rate on future loans. Paying off the car affects your available credit not one whit.
Dave’s point is to get out of debt, not maneuvering for a better position to go deeper.
Generally, yes. But having too much available credit capacity can actually lower your score. Counter-intuitive, yes, but true.
Still, though, the rule of thumb is always try to pay off high-interest debt first, especially if it's revolving debt like credit cards.
You obviously have no idea about the system that Dave teaches. If you live a lifestyle according to the 7 baby steps, then there is no need for future loans and no concern about the FICO score. Your comments are more aligned with Suze Orman....
Not that your approach to your own life is bad, but it is just not aligned with Dave’s approach.