My mom is voluntarily giving me $8000 to pay off the rest of my car loan. Do you think its better for my credit if I pay off the $7800 balance so I no longer will have a car payment.....or use the $8000 to help pay off half of my $16,000 college loans?
2006-10-22 10:28:13 · 9 answers · asked by ckjnap04 2 in Business & Finance ➔ Credit
Pay off the car.
2006-10-22 11:49:49 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It depends. Will paying off your car loan free up enough money to prepay your college loan? Also, what are the interest rates and monthly payments? You have to look at cash flow at this stage in life. Better yet, paying your mom back with interest is the right thing to do. You don't want to develop into a freeloader, or are you one already?
2006-10-22 17:34:54 · answer #2 · answered by wanderlustgettingtome 3 · 0⤊ 0⤋
Go for the loan that has the highest interest rate. By not having the car payment, you will have more money per month to pay onto the student loans. If your Mom is telling you that the car is what she's giving the money to you for, then, isn't it obvious what you should do???
2006-10-22 17:33:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Usually car loans are at higher rates than student loans so paying off the car loan will save you money on interest in the long run.
2006-10-22 20:05:54 · answer #4 · answered by Mariposa 7 · 0⤊ 0⤋
pay off the car.
pay off something that loses value fast.
take the car payments pay off the student loan before you give it a name.
visit DaveRamsey.com to learn about money before you end up like most college students - slaves to debt.
2006-10-22 17:35:48 · answer #5 · answered by Anonymous · 0⤊ 0⤋
pay off the loan with the highest interest rate. im sure its the car.
if you have a hard time paying the school loan you can get a differment not so the the auto loan.
2006-10-22 18:06:43 · answer #6 · answered by kenneyblurod 1 · 0⤊ 0⤋
PAY OFF YOUR COLLEGE LOANS ,
The reason it will help others (students in need) If You want your car, you can earn and repay If not you will loose your car, but if you repay your college loan another needy student will get educated
2006-10-22 17:40:32 · answer #7 · answered by procecutor 1 · 0⤊ 0⤋
pay off the car - I'm sure the interest rate on your student loans are much less.
by the way you've got one heck of a mom
2006-10-22 17:32:29 · answer #8 · answered by Jazz 4 · 2⤊ 0⤋
If you pay off the car it will look better on your credit because you finished it early
2006-10-22 17:36:30 · answer #9 · answered by thecrazyone 2 · 0⤊ 0⤋