Question

Budgeting question!  I have paid off my credit cards so I now have extra money that I was allocating to cc freed up (about $300).Budgeting question! I have paid off my credit cards so I now have extra money that I was allocating to cc freed up (about $300). I was thinking about increasing my car payment from $307 to maybe $500 a month to try and pay that down faster. I’d also like to put the rest of this money to my student loans and start paying them off more quickly attacking the higher interest ones first. Feedback?!  

Answer 1

I’m in the same boat with about the same numbers as you. I figured that my student loans will be with me longer than my car loan, so I’m attempting to tackle smaller loans of my student loan first. I still question this decision though.  

Answer 2

Your school loan interest is likely less than your car loan interest. If this were me, I personally would tackle the car first. Just me though  

Answer 3

I’d check out your interest rates and go for the highest, now that your cc is gone.  

Answer 4

We are saving our student loans for last. Our rationale is that if anything bad were to happen the student loans could be put on hold (forbearance, income based payments) but the vehicles would still have to be paid on. One vehicle has a lower rate than the student loans, one has a higher rate. Once we knock them both out (by the end of the year) we will aggressively attack our student loans.  

Comments

@hauteur I feel this way too. My car is depreciating value daily so I think my student loans can wait

Answer 5

Pick one thing to pay off fast at a time. Then, when it’s paid off, you have even more extra money.  

Answer 6

I used this website to figure out how long it will take to payoff loans. =.  
https://www.calcxml.com/calculators...n?skn