2007-12-27 06:05:07 · 34 answers · asked by mtmays1 1 in Business & Finance ➔ Credit
Usually you pay off the highest interest rate first regardless of its balance.
2007-12-27 06:07:09 · answer #1 · answered by Red Wing 3 · 2⤊ 1⤋
Student loan - the faster you pay off the less interest you need to pay.
Car loan - depends on what type of loan you have, some loans calculate interest with priciple together, and give you the fixed monthly payment, no matter how soon you paid off, you are paying same amount of interest.
Mortage loan - is the long term loan, so you paying interest at beginning years, good for your tax benefit.
The best way, if you have enough equity in the house, then get a loan than use the loan to pay off the other two. Because the interest you are paying will be tax deductible and you have a longer term to pay off.
2007-12-27 06:47:14 · answer #2 · answered by paobay 4 · 0⤊ 1⤋
Student loan and car loan. Congrats on paying off your credit card loans. Try not to use them again! Double the payments on your student and car loans or add an extra 50 - 100 per month. It makes a big difference.
2007-12-27 06:08:02 · answer #3 · answered by llselva4 6 · 0⤊ 0⤋
Congrats!!! That's great! I would go for the car loan next. Mainly because that's most likely the smallest, and will give you a sense of accomplishment to get it paid off. More motivation for the next debt. student loans and a mortgage could take YEARS.
2007-12-27 06:08:12 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Without analyzing things like interest rates- lenght of the loan, and principle left, typically when I teach Get Out of Debt Seminars and Workshops, and based on typical scenarios,
Car, Mortgage, Student Loans.
Courtney Kostelecky
Founder DebtFreeNews.com
2007-12-28 06:25:37 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If you are strictly looking at the math of the issue then it would be the highest interest loan that should be next. However, for me, I go from lowest balance to highest. That way I feel like I am making progress.
For instance, if I had two loans I had to pay back, one being $1000 and one being $3,000, I would want to knock out the $1000 out first even if the $3,000 one had a higher interest rate. Once the $1,000 one was gone I would be more motivated to continue on. Again, that is just how I feel.
2007-12-27 06:58:25 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Mortgage because it helps you build equity, the others will improve your credit score but having equity allows you to borrow in case of an emergency, you won't get that paying back your student loans. I would pay a little on everything but more on the mortgage. You can always borrow against the house at a lower interest rate and pay back the other loans and probably get a lower interest rate.
2007-12-27 06:10:33 · answer #7 · answered by trinisugar 3 · 0⤊ 1⤋
Car loan
2007-12-27 06:14:04 · answer #8 · answered by happy_mommy1245 2 · 0⤊ 0⤋
That depends on your rates. I would say most likely the car since student loans and home loans usually have pretty low rates. Also the interest on the home is deductible so that would be last to pay off.
2007-12-27 06:09:12 · answer #9 · answered by Preston B 2 · 0⤊ 1⤋
amazin is right but to piggy back. You could knock out a car loan. or student loan (not sure how much you owe) In any case, whenever you pay, say your car loan is 250 a month. Send them 275 or even 300. That extra money is all paid to principal and you can pay it off earlier, cheaper and not lose all that money to interest had you stayed on your "scheduled" payments.
2007-12-27 06:10:03 · answer #10 · answered by GJ 3 · 0⤊ 1⤋
The car loan. The interest on student loans and the mortgage are tax deductable.
2007-12-27 06:07:38 · answer #11 · answered by I Like Stories 7 · 3⤊ 1⤋