so, i have 1687 on my CC w/ 0% APR till jan. 2008.
i have to pay student loans too.
my question: should i pay my accrued interest off when paying for student loans or put all money toward CC so it will be paid off?
i plan on take my tax refrund, about 1200, and completely paying my CC. my CC interest will be 11%, after jan. 2008
i have a baby due in 2/08. i have to pay 250 monthly for daycare
i'm thinking that i should get rid off the CC bill because that's one less bill, and THEN focus on teh student loan, but i dont if that will hurt me in the long run.
my studnet loan interste is less than my CC
2007-12-20 11:18:02 · 5 answers · asked by happypants 3 in Business & Finance ➔ Personal Finance
i get money back for paying interest on student loans; money back from home insurance...so, i dont see how i get too much money back???
you dont even know how much i make!
2007-12-20 13:05:42 · update #1
General rule of thumb is pay off the highest interest loans first. So I would suggest paying the minimum on the student loans and as much as you can on the credit card balance until that is paid off.
2007-12-20 11:26:52 · answer #1 · answered by The Professor 5 · 1⤊ 0⤋
1. If you will be receiving a $1200 tax 'refund', you are having $100/month TOO MUCH withheld. Adjust you withholding to receive the money in your regular pay checks.
2. Jan 2008 is 10 days from now. Your Student loan rate IS under 11%. Both the 'highest rate first' and 'lowest balance first' schools of though indicate you should pay off the Credit Cards first.
If you are now living on LESS than you make and ATTACK your debts, this IS NO long term in this discussion. If you are living on MORE than you earn, it doesn't matter what you pay because you are still digging the hole.
2007-12-20 12:55:03 · answer #2 · answered by STEVEN F 7 · 0⤊ 1⤋
That relies upon on you-- Do you believe your self to no longer value lower back up the mastercard? Be honest with your self. if you're a basic charger, then pay down the student loan. no longer judging all and sundry the following--basically speaking from personal adventure, i'm no longer good with charge playing cards. once the student loan is paid, that's paid, you won't be able to get that money lower back. yet by paying down the mastercard, you would possibly want to flow excellent lower back and re-value up the steadiness you in uncomplicated words paid off. then you're excellent lower back into the problem you're literally, in uncomplicated words with out the tax refund. once you've already gotten rid of the cardboard, and definately received't use it lower back, then it extra relies upon on the steadiness. basically because the student loan has a more effective fee, dosen't advise you're paying extra interest in line with month, if it has a decrease stability than the cardboard, you would no longer be. Pay down which ever one you're paying extra interest in line with month on. And, certain the price would properly be significant the following, too. undergo in innovations that as you pay down the mastercard, the minimum funds receives lesser. student loan funds have a tendency to stay a similar over the life of the loan. i'm no longer declaring you ought to ever pay the minimum on a mastercard, yet now and again emergencies ensue, and that's all you would possibly want to do. if you're demanding about an emergency fund, do not pay down the mastercard for that. positioned all or part of the money into some variety of interest bearing reductions account that you'll in uncomplicated words get entry to by taking position to the monetary corporation--the monetary corporation can help you with that. That makes it so a lot extra sturdy to spend it on luxury products, yet that's nonetheless accessible in a significant emergency. credit reduce on a mastercard isn't emergency reductions. certain, that's good to have in case of an emergency, yet reductions in case of an emergency is a lot extra ideal to have.
2016-10-19 21:36:30 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Steven is right - he based that on your tax refund. A refund isn't free money it's money that you basically loaned the government at 0% interest all year. But anyway, to your question, definitely pay off the credit card first.
2007-12-20 13:43:47 · answer #4 · answered by wckc2002 6 · 0⤊ 0⤋
when deciding which loans to pay off first, always pay the ones with the highest interest rates. that's as you state the cc. and don't ignore the student loan or it will come back to haunt you.
the 0% on the cc is almost up and you'll find that the real rate is quite high compared to your SL
2007-12-20 11:26:54 · answer #5 · answered by Anonymous · 1⤊ 1⤋