I have about 3K in credit car debit and about 3K left owe on a car. I recently had a CD at the bank come up. Its worth 5k. I'm using about a thousand of it to move and want to put at leaste a thousand in the bank so I have at leaste some money in my savings. I do think I should pay one or the other off.
I have about $1,900 on one with an interest rate of 12%,840$ that is @ 0% and 200 on the other thats at 11%.
The interest rate on the car isn't bad but its high enough. What would you do?
2007-09-03 15:51:26 · 6 answers · asked by BS and thats no BS 1 in Business & Finance ➔ Personal Finance
i would at least pay off the 2 cards with interest rates, and maybe apply the balance to the car...
the more balance you keep that charge interest, the more you will end up paying in the long run... if monthly expense is the issue, then pay off all the credit cards... just a thought
2007-09-03 15:59:51 · answer #1 · answered by kinn2him 3 · 1⤊ 0⤋
Which you pay off first depends on the rate of the car loan. How much you pay off depends on your comfort level and income.
If you assume the car loan is less than 11%, then I would use the $5,000 as follows:
$1,000 - moving (per your question)
$1,900 - pay off 12% rate card
$200 - pay off 11% rate card
$400 - pay towards the principal of the car
$1,500 - invest into a 6-mo CD or a high-interest rate savings account (to build up your emergency fund).
2007-09-03 23:21:03 · answer #2 · answered by Mike 3 · 0⤊ 0⤋
if you can keep the credit card in your bill fold and not run up any unnessary debt i would pay off the cc -- on the other hand depending on you age and how much risk you want to take you can pay off the car and drop some of you coverage and save on insurance -- i know the ball is back in your court!!!
2007-09-03 23:02:36 · answer #3 · answered by mister ed 7 · 1⤊ 0⤋
pay off the two cards that carry interest then pay on your car note. always pay down the highest interest rate first.
2007-09-03 23:19:32 · answer #4 · answered by nikkylyn 5 · 0⤊ 0⤋
Pay off the car you don't have to worry about "running the bill back up" after it is paid off. And you will own it.
2007-09-03 23:18:44 · answer #5 · answered by unique 4 · 0⤊ 1⤋
You already know the answer ... the one with the highest interest rate.
2007-09-03 23:03:29 · answer #6 · answered by jdkilp 7 · 1⤊ 0⤋