Here's my dilemma. I make crap at my job. Soon my student loan payments will kick in. My car will be paid off in February, but there will be 5 months where I'm paying student loans and a car payment. If I pay my car off now (which is only about 1000), then I won't have such a hard time those 5 months. However, I have $10k on a credit card, and the interest is way higher than my car loan. I can put that money towards the credit card, but it will barely make a dent, nor will it lower my monthly payment by much. What should I do? I know it makes more sense in the long run to do the credit card, but I'm going to be sooooooooooo poor during those five months of car and student loan payments.
2007-07-22 06:24:48 · 10 answers · asked by two_kee_kees 4 in Entertainment & Music ➔ Polls & Surveys
normally, I would pay the credit card but in you case, I say the car. Put that credit card up where you can't touch it. Good Luck.
2007-07-22 07:06:14 · answer #1 · answered by Michelle 5 · 0⤊ 0⤋
You are right in that the higher interest rate credit card should be paid first. However, given what you describe here i would agree that you should pay off the car now, then put that monthly payment amount on your credit card until your student loan payments start.
2007-07-22 13:30:37 · answer #2 · answered by Schlump 3 · 0⤊ 0⤋
you want to tackle the high interest bills first then move your way down. pay the credit card first, because of the high interest. when you give them 800 dollars, the interest should decrease by your next payment (i know you said by a dent but still.) the car's payment should be the same monthly since interest was already added since you bought the car. so you give what they ask.. unfortunately, the student loan is going to be bad too. maybe put half on the student and half on the credit card.. good luck!
2007-07-22 13:32:48 · answer #3 · answered by claria 6 · 0⤊ 0⤋
Pay off the Bigger bills which would be the credit card then do the car then the student loans or the loans then the car but do the credit card first!
2007-07-22 13:43:30 · answer #4 · answered by ♥KeLsEy♥ 4 · 0⤊ 0⤋
By the way, both are good answers as paying off debt first is the right thing to do. Go after the one with the higher interest rate since that will bring your interest payments down overall. This will give you more money in the long run to pay off the other bills. I would pay it in the middle of your normal billing cycle to make sure it all goes to principal and none to interest.
2007-07-22 13:28:09 · answer #5 · answered by Anonymous · 2⤊ 0⤋
i would say help yourself for those 5 months and pay off your car. the nice thing about that is it will be DONE, so you will have one less bill to worry about. you're right about the credit card... although it would be nice to have $800 less on it, it will barely make a diff. but once your car is paid off, you will be able to pay more towards the credit card on a monthly basis!
2007-07-22 13:29:17 · answer #6 · answered by ♫ Abby ♫ 4 · 1⤊ 0⤋
suggest making an extra payment on your credit card with the entire amount going towards the principal not the interest.
2007-07-22 13:34:33 · answer #7 · answered by Marvin R 7 · 0⤊ 0⤋
I would pay off the car loan..especially since you only owe $1000. Plus once you pay off your car loan your insurance will go down. Well if you're financing your car that is. It sounds like you would be struggling more if you put the money towards your credit card bill. Pay off the smaller bills first and then work on the bigger ones.
Good Luck!!!
2007-07-22 13:29:15 · answer #8 · answered by Anonymous · 1⤊ 2⤋
I would put it on the car. Make sure you tell them you want it put toward the principal though.
2007-07-22 13:30:46 · answer #9 · answered by LuvinLos 5 · 0⤊ 0⤋
pay the credit card.
2007-07-22 13:28:16 · answer #10 · answered by ? 7 · 0⤊ 0⤋