currently I have 15 months left to pay off my car.
car insurance payoff is $1800.
debt management is to be completely payed off in 2008.. around $5000 is left. OR should I use the extra cash on myself. what do you suggest?
2007-03-28 17:22:06 · 10 answers · asked by moirap 1 in Business & Finance ➔ Personal Finance
Use it toward the debt with the highest interest. That way, you can pay more of it off. If it completely pays off the highest interest debt, then pay the next one down, too, and do this until you run out of cash.
2007-03-28 17:31:12 · answer #1 · answered by Richard H 7 · 1⤊ 0⤋
Pay off the insurance. That way, you have one less bill. The key is to take the money you were paying towards the insurance and apply it towards the car. Then, once that is paid off, take both those payments and apply them to the debt management. THAT is how you will ultimately be able to get out of debt. After that is done, instead of getting some piddly little something for yourself as a "reward," take the money you have been using on all three payments and do something GOOD. Vacation, big screen TV, whatever floats your boat. Good luck!
2007-03-28 18:01:37 · answer #2 · answered by Celo 2 · 0⤊ 0⤋
Make your monthly payments on your car insurance. It is a non-interest bearing account, and is a scheduled monthly bill.
If your car has less interest applied towards it than your debt that is contained within your debt management program, then place the entire amount towards your debt management program.
Debt management programs are serious when it comes to your credit history. Being enrolled within a debt management program significantly lowers your credit score!!!
Rule of Thumb: When paying off all debts, always put extra money towards the debt with the highest interest rates applied towards them...
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2007-03-29 17:32:22 · answer #3 · answered by Raymond Y 1 · 0⤊ 0⤋
I would say to put aside $100-$200 to spend on yourself so you can enjoy it. That leaves $1600-$1700 to spend on debts. I would suggest not paying off the car insurance, but making the monthly payments on that. Put some extra towards your car and towards the debt management. Put more money towards whichever has the higher interest rate.
2007-03-29 07:10:06 · answer #4 · answered by wilye21680 2 · 0⤊ 0⤋
$600 extra toward principal of the car payment. do not make future payments, apply that full $600 to the principal part of the loan and include that $600 with your regular payment and say it is to be applied to principal only. Why? It saves you oodles of interest over the life of that loan.
$600 toward your debt management
$300 in savings/IRA
$300 for you, you need to blow a little on yourself for being so good about applying the other money toward your long term security.
2007-03-28 17:26:57 · answer #5 · answered by Anonymous · 0⤊ 0⤋
i wouldn't pay off your car insurance, because that will reoccur. I would put $1000 towards your car, principal only payment! $500 toward your debt, you know that will be gone next year. and keep some for yourself. maybe put 200 toward the insurance, and buy yourself something nice!
2007-03-29 05:02:39 · answer #6 · answered by rgehron1031 3 · 0⤊ 0⤋
Man pay off the car and get rid of one debt you don't have to pay and take a little pressure off your finances. You can use what you don't make payments with a little at a time to get something nice for yourself, but save for it and pay cash. It feels so good to pay cash for something and you know its totaly yours. take care Heather
2007-03-28 17:28:10 · answer #7 · answered by Anonymous · 1⤊ 0⤋
Pay off whatever debt your paying the most interest on.
2007-03-28 17:26:23 · answer #8 · answered by shano 2006 1 · 1⤊ 0⤋
pay down debt, especially if its high intrest like credit card debt.
2007-03-28 18:13:06 · answer #9 · answered by comic book guy 5 · 0⤊ 0⤋
give it to me
2007-03-28 17:30:46 · answer #10 · answered by grumpy0282 3 · 0⤊ 1⤋