Hello all! I'm brand new to MMM. I have vehicle loans and credit card debt. I understand the logic of paying off the highest interest debt first, then the second highest, etc. I wonder whether there might be an exception to this. I am about $4,000 upside down on a loan for a motorcycle I own. If I made paying as much as possible on the motorcycle and just made minimum payments on my other loans for a period of 4-5 months, I would be right side up on the motorcycle loan, and therefore in a position to sell the bike. That would free me of that payment, insurance on the bike, and I could sell some motorcycle gear on craigslist. At that point in this scenario, I would take all of the money I freed up from the motorcycle to pay down my highest interest loan. I should note that my highest interest credit card has an interest rate of 15.24% while the motorcycle loan is at an interest rate of 1.89%
Whichever debt rises to the top priority, I'll have approximately $1,000/month to throw at it on top of the minimum payment.
Thanks in advance for your time.