I have some CC debt ~11,000(10%apr). We are having a baby in three mos. I had to sell my truck which was paid for to get a car. We decided on a car that ended up costing 12,500(payments are around 230 w/ a 6.4 apr). I was able to sell my truck for 5500.
I am starting school full time in Aug of this year and my salary is going to go way down.
Should I use the 5500 to pay my cards way down and keep the 230 payment while in school OR should I put the 5500 towards the car loan and amortatize it and make my car payments around 140 (which would probably help more when in school).
Thank You
2007-12-05 03:34:40 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
I would put it on the credit card. That way, you'll accumulate less interest and your credit card monthly minimum payment will be lower.
2007-12-05 03:43:22 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You should pay down the credit card debit with 10% APR. But can you still get that 6.4% APR auto loan with NO down? I would still suggest you to pay down the credit card, because there is minimum payment required every month. Once you pay down the credit card, you will have less minimum payment monthly on your credit, since your income will be decrease drastically, that might help. But do try to pay off credit card debits as much as you can.
2007-12-05 03:54:20 · answer #2 · answered by Anonymous · 2⤊ 0⤋
pay off your card now. 11000 is a LOT, and with a baby it's only going to pile up more. It's easy to get in debt over your head, and it'll only get worse if you keep putting it off.
2007-12-05 03:44:37 · answer #3 · answered by xooxcable 5 · 0⤊ 0⤋
Both. Put $2500 toward both, and bank the $500 for EMERGENCIES.
2007-12-05 03:43:22 · answer #4 · answered by Mazz 5 · 0⤊ 0⤋