My credit cards are just over $30K. My car note is over $35K and the payment is $718 monthly. Should I sell it and use the $15k to pay off the negative equity? I want the $15,000 to do the best for my longterm situation.
2007-12-31 09:58:34 · 7 answers · asked by vsuzyq96 2 in Business & Finance ➔ Personal Finance
Well unless your having trouble paying your car payment Iwould pay off your credit card debt. At least the car has some equity to it. mindless credit card debt doesn't.
2007-12-31 10:06:44 · answer #1 · answered by mutant_blonde 3 · 0⤊ 1⤋
Sell the car. take some of the money to pay it off if you have too. Get a cheap cash car and take the $700 a month plus what ever other money you can squeeze out of you budget and put on the cards.
2008-01-01 04:28:57 · answer #2 · answered by heybulldog 5 · 0⤊ 0⤋
I would sell the car even without the $15,000. If you can borrow the negative equity for less than the rate on your cards, you many be better off doing that and using the $15,000 to pay off some of the cards.
2007-12-31 12:56:44 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
Pay off the Credit cards first. Start with the smallest balance ones first. Pay off as many as you can. Then use the payments you had been sending to all the smaller balance cards against the bigger balance. Keep at it until the credit cards are all paid off.
Then stop using the credit cards; they are a financial disaster for you. cut down your lifestyle to what you can afford. Pay cash.
Put part of the $15k in savings as an emergency fund to have on hand to pay emergencies instead of putting the "emergency" expenses on the vampire credit cards. Ideally 3-6 months living expenses should be in savings as an emergency fund.
2007-12-31 12:53:31 · answer #4 · answered by ? 1 · 1⤊ 0⤋
If you want the best for yourmoney, pay of the higher interest. If you want less payments every month, do the one that will be paid off so you only have 1 bill.
2007-12-31 10:40:37 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Pay off whatever has the highest interest rate first. That's what's killing you slowly.
2007-12-31 10:32:46 · answer #6 · answered by Anonymous · 0⤊ 0⤋
i would find out what debt has the highest interst rate and pay that off first and with the monthly payment from that debt add that money to another debt and start paying that off .
2007-12-31 10:07:24 · answer #7 · answered by jgilbertdo 5 · 2⤊ 0⤋