Author Topic: Need help  (Read 1180 times)

Knightmagic

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Need help
« on: May 30, 2019, 10:57:30 AM »
So my wife and I are working on our mustache and we are trying to determine what should we pay off first. We have a car loan at 15% (I know we were stupid to ever get a loan at this rate) with a balance of 18,800. We have two credit cards with 1.5% cash back rewards with values at 3k and 4k both at 15% interest. We are sure we can pay off the car loan by end of year. But should we pay the credit cards off first?

roomtempmayo

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Re: Need help
« Reply #1 on: May 30, 2019, 11:00:14 AM »
Interest rates are a wash, so pay the secured car loan before the unsecured credit cards.

Facepunch answer: Sell the car, pay the cards, save the rest.  We both know you don't need an $18,000 car.

Knightmagic

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Re: Need help
« Reply #2 on: May 30, 2019, 12:48:03 PM »
I have been face punching myself for quite awhile now on this loan. thanks for the fast response!

katscratch

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Re: Need help
« Reply #3 on: May 30, 2019, 02:13:18 PM »
Financing my car (luckily at a lower interest rate) was the push I needed to find MMM, so you're not alone in the after-the-fact car guilt :)

Depending on your insurance needs, paying off the car first compared to the credit cards could be an even bigger advantage if you were planning to lower your insurance coverage.

 

Wow, a phone plan for fifteen bucks!