Author Topic: Need help  (Read 316 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?

caleb

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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.