I have enough money to either , pay off a loan at 12% or a credit card at 9%. Which would make more since?

Answer 1

If they are the same amount due, the 12% for sure. Then pay the 9% as fast as you can to cut your interest rate on that one.

Answer 2

I would pay off the 9% credit card first. Reason is that credit cards companies are becoming more aggressive and are tacking on fees and raising interest rates more frequently. Depending on what the 12 % loan is for I would most likely keep that and pay off your credit card. Although the loan is 12% the amount you save in fees and increased interest from your credit card will outweigh the 3% difference. One more thing, with a credit card you also have to worry about maintaining a balance that is 40% of your credit limit to avoid lowering your score. Installment loans are a safe bet and you may be able to refinance later.

Answer 3

If you get those 0% cc offers in the mail, why don't you do a balance transfer then pay off the loan. That way you will pay $0 for interest. If not, I suggest paying off the loan first. You are paying more in interest at 12% vs 9%.

Answer 4

Consolidate the 2 into 1 loan, and no not on the credit card, pay the lump sum toward the loan and you will be left with a small amount that will be gone in no time.

Answer 5

I'm guessing that the 9% on the credit card is just a temporary low rate, and that the rate will get jacked up pretty soon. If that is the case, I'd pay off the credit card now while you have the cash.

Answer 6

is your loan a fixed one,,, meaning one that will be paid at a certain time.. if it is i would pay the credit card off first ..take your interest per month and times it by twelve and see what your paying on just interest alone and then take your payment and do the same then deduct the interest from the payment and you can see what your actualling paying per month.. on my card i am paying 60 dollars a month and 48 dollars of that is just interest..interest for purchase .. cash advance... balance transfer because they charge separately for all three so i am only paying 14 dollars a month on my balance it will take me over 10 years to repay it where as my personal loan which is 30 dollars higher a month will be payed out in 2 years

Answer 7

If it is an installment loan like for jewelry, or tires or something like that, pay it off first. That has a more negative effect on your credit. If not then pay off which ever will save you the most money in the end.

Answer 8

it depends how much you have on the loan, and then how much you have on the credit card...then take that amount and multiply the percentage to the amount and the one with the highest number is the one you should pay off first. for example...if you have $100 in both...then the one at 12% should be paid off first, because the interest is higher.

Answer 9

It really depends on how much each of them are and which one is the least. When paying off debt, it is best to pay off the smallest amount first. The reason for this is that you want to completely pay off as many things as possible in the least amount of time. If you start working on the largest amount first, you'll spend years working on that one and still have other ones left over to worry about.

So, when deciding which to pay off, pay off the one with the least amount. If they are the same amount (or roughly the same amount), then I would say you should pay off the credit card first.

Answer 10

From what I hear it's better to pay off the high interest loan first assuming you owe about the same amount on each. If one is smaller concentrate on that first and after you pay that one off send all your spare money every month to pay off the other one as soon as possible.