2007-02-20 12:00:33 · 5 answers · asked by bucstyle06 1 in Business & Finance ➔ Personal Finance
Probably the higher rate one, but know a few things. First, you can usually deduct student loan interest from your taxes if you make less than $65K a year, although there are limits ($2500/year) and if you make between $50K and $65K a year you can't take as much. If the student loan is only 1% higher, after the tax issue, it might effectively be lower b/c you get some of the money back.
Are any of the rates variable? The car loan may be lower now, but might it be higher later?
And are the loans set up in a way that if you pay off part of it, you'll make the same monthly payment for a shorter period of time into the future or a smaller monthly payment for the same number of months? Find out and think about whether you want to pay the loan off or you'd rather have that cash on hand in case you need it.
2007-02-20 12:26:23 · answer #1 · answered by venom9176 2 · 1⤊ 0⤋
1
2016-09-26 10:17:29 · answer #2 · answered by Kelsie 3 · 0⤊ 0⤋
Two options:
a) pay off the one with the highest monthly payment, so you have more cash.
b) pay off the higher interest one, so you save more money in the long run.
It depends on which is more important to you - immediate cash flow or long-term savings.
Whichever one you pay off, take the amount you pay on it and add that to your other payment every month, and soon you won't have any debt!
2007-02-20 12:04:28 · answer #3 · answered by Steven D 5 · 0⤊ 0⤋
The student loan first
http://index-go.com/improve-credit-score-get-out-of-debts-fast.asp
2007-02-21 05:39:53 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Duh, get rid of the highest interest debts first!
2007-02-20 12:04:16 · answer #5 · answered by Brian G 6 · 0⤊ 0⤋