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i have $10000 in my savings account right now earning 5%APY.

just need your advice which debt should i pay first
my balances are:
1st credit card = $6000 13% interest still have 13 months of 0% intro rate
2nd credit card= $4000 13% interest still have 2 months of 0% intro rate
1st auto loan= $3600 8.7% interest
2nd auto loan= $17000 9.9& interest

should i pay the highest balance first?? help!!

2007-03-04 15:17:32 · 6 answers · asked by Lynx S 1 in Business & Finance Credit

6 answers

the debt with the highest interest

2007-03-04 15:25:39 · answer #1 · answered by forthursdaynight 2 · 1 0

Pay the one with $4,000 balance first since you only have a few months left at 0%. Then try to make regular (not the minimum!) payments on the $6,000 balance. Always try to keep your credit card debt as low as possible. Credit cards are excellent for building your credit score up if you make regular payments and keep your balances low but once you start carrying larger balances they can become really problematic.

Try to get rid of the smaller auto loan as quickly as possible. Carrying two auto loans doesn't look too great on your report.

That $17,000 auto loan was not the greatest, I'm sure you wish you could have that one back. $17,000 at 9.9% is going to cost you quite a bit in the long run.

2007-03-04 23:39:24 · answer #2 · answered by acvader 2 · 0 0

Man, no offense but you need a financial planner because it sounds like your overspending. Pay the $4,000 off and use the rest to pay off the auto loan(2nd one). Meanwhile STOP spending so much money!!!!
However, make sure you have $6,000 left in 1 year so you can pay off your card.

2007-03-04 23:27:48 · answer #3 · answered by Jumpy 2 · 0 0

I would suggest you to join a debt settlement company and pay off your unsecured debt on credit cards.

They will negotiate with your creditors on your behalf and bring down your principal debt by around 40% and also they will help you make minimum monthly payments which are affordable to you. You can be out of debt within 36 months depending on how much you can afford as monthly payments.

check out this company. They have helped me out with the unsecured debt problem.

http://www.debtfreeafterall.com

Good Luck

2007-03-06 16:24:39 · answer #4 · answered by Hima K 2 · 0 0

You should pay the highest interest loan. Which seems to be also your highest balance. Second to go would be the second highest...... to lowest in interest rate.

2007-03-04 23:24:22 · answer #5 · answered by C. B 2 · 1 0

Why not consolidate all bills into one reasonable percentage rate. This way, you'll pay just one bill. Good luck in deciding!

2007-03-04 23:26:15 · answer #6 · answered by Tina B 2 · 0 0

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