2007-02-21 17:24:32 · 5 answers · asked by rosesbloom7 2 in Business & Finance ➔ Personal Finance
I'd look at the rates. I just about imagine that the credit card APR is quite a bit higher than the mortgage APR.
I'd pay on the credit card and eliminate that debt altogether, then close the account. That will free up a huge amount of money to apply to other bills and to the mortgage.
If your mortgage is fixed, then nothing will change on it, but if it's a variable rate, watch out because it will go up on you and you don't want that to happen with other debts outstanding as well.
2007-02-21 17:32:07 · answer #1 · answered by Anonymous · 1⤊ 0⤋
People are saying to pay the one with the higher rate, which doesn't make sense.
The mortgage interest is tax deductible (in most countries). You are better off paying the non-deductible credit card, unless the interest rate on the mortgage is significantly higher than the credit card, which isn't likely.
2007-02-22 13:37:26 · answer #2 · answered by Quixotic 3 · 0⤊ 0⤋
If you have enough money to pay more than minimum payments, always pay toward what is costing you more in interest. Mortgage interest is usually less than credit card interest. If that is so in your case, pay the CCs first.
2007-02-22 01:28:31 · answer #3 · answered by Brian G 6 · 3⤊ 0⤋
Pay the CC. But then don't use it anymore.
An interest only mortgage is a receipt for financial disaster
2007-02-22 01:33:11 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Pay down whatever it is that has the highest interest. That's usually the credit card.
2007-02-22 01:30:31 · answer #5 · answered by ⊂( ﾟ ヮﾟ)⊃ 4 · 3⤊ 0⤋