Question

Question about paying off debt. We are expecting a bonus and tax returns shortly. We were initially going to just stick with the snowball method but then started thinking, should we pay off our cars first? The car payments will free up $765 a month total, verses $200 a month if we pay off our 2 smallest credit cards. Any thoughts and suggestions would be appreciated!  

Answer 1

If you can pay off your cars completely and take the $765 a month and put towards the snowball, then I would go for it myself.  

Answer 2

If you can pay them off then go for it!  

Answer 3

If you can pay them in full that’s great! If they are low interest you might want to run the numbers both ways to see how much you will pay in interest on the cards if you opt for the cars first. If the difference is small I’d go for it.