A 24% credit card APR looks like the obvious debt to attack before a 7% car loan. Usually, putting extra money toward the credit card makes the most sense because every additional dollar reduces more expensive interest.
But there is a wrinkle that gets overlooked: the interest rate is only one part of the bill. The balance, remaining loan term, minimum payment, and how the debt accrues interest can change the math. In some situations, paying the lower-rate car loan first can eliminate more total interest dollars, even though its APR looks much friendlier.
