Question

I am so torn on how to use my tax money! I thought I had a set plan but now that I’ve written every balance, interest rate, and payment down I’m confused. I got back $1, 800. I know people say student loans first, but they’re actually my lowest rate(besides the car). Should I just work on the higher balances or the rates?! I need opinions  side note: arbella is my car insurance and I just used my sinking fund to knock down half of the total, so I’m not sure what my monthly payment will be.  

Answer 1

Nope, pay off those 2 loans, #1 & #2. Just be ride of them. It will feel so good to not see them in budget anymore. Then T-mobile, Capt One, & BOA. It will feel so, so good not to have to look at those ones in a couple of months. Goodbye payments!  

Answer 2

Pay off the last three, then the rest on B of A. That way your highest rate is paid off and just paying off the others should make you feel good about having some debt wiped out.  

Answer 3

Watch Mikos you tube video on snowball vs avalanche and make an informed decision!  

Answer 4

If you don't start shovelling money towards Discover, you are going to get hurt with interest come May. We had a no-interest card and on the statement before the 0 interest was up, it showed that $1300 in interest would be applied to the balance on the expiration date. Scared us to death. Thank God we had the money to pay it off

Answer 5

I’d do the capital one and boa first

Answer 6

Pay off Capital one and then throw remainder at whatever BOA is.  

Answer 7

If do cap 1 then loan 2 and loan 1 as much as possible

Answer 8

Cap one pay off.! And rest to discover. Avoid does high interest ASAP !  

Answer 9

Yay for Mazda’s!  cap one first!  

Comments

@lawana Lundberg haha just got it in December. It’s a Cx-5. My other car died and I didn’t have much of a choice. But I love it!  

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@brandes I have a 13 year old Mazda 6.  

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@lawana Lundberg they say they’ll last forever! I’m hoping so!  

Answer 10

Cap one

Answer 11

Is your discover card interest free until May? Does the interest go back over the life of the credit? If yes to both, I would put it all on that and pay that off before May

Answer 12

Capital one just to knock it out and have a small win but then the rest to Discover. While it would be nice to get rid of more then one debt all at once you would pay less in the long run if you pay of the discover before the apr changes.  

Answer 13

I would start at the bottom and work your way up.  

Answer 14

Smallest to largest balance

Answer 15

What is your monthly snowball right now?  

Answer 16

Cap 1 and probably as much as possible on B of A. I think the snowball method is great, but I would apply it to credit cards first because A) the interest compounds monthly. every month you leave a balance, you are adding to what you owe. and B) as you pay it off, the minimum monthly payment lowers so you increase your snowball at a steady rate. Things like phone or student loans are so long term and low interest that there's not much point in paying early unless they are the only debt you have.  

Answer 17

Pay off high interest CC and loans first, you'll save money in the long run

Answer 18

Capital one, knock it ojt and then rest to BOA. Both has the highest interest rate.  

Answer 19

I am doing tire plus first and half to boa and discover. it’s a tough decision

Answer 20

I would do the capital one and then knock down the discover. That discover hits like a ton of bricks with the interest. You won’t have that amount paid down by that date  definitely close out Cap One and throw the rest at Discover

Answer 21

I'd do Tmobile and Capital one, then you put the rest to Discover balance. I'd also put what I would pay monthly to them into paying off Discover.  

Answer 22

Cap one and then BOA. Get BOA knocked out as soon as you can since the interest is so high.  

Answer 23

Use the free online tool Kumiko talks about in this video and play with the options to see which one is better for you.  
https://youtu.be/xyVm4aP3GXY

Answer 24

Knock out the lower balances and throw those monthly payments to the next bill from the bottom.  

Answer 25

Capital one for sure

Answer 26

ALWAYS. payoff you smallest to largest debts. good luck.  

Answer 27

I would get rid of capital one.  

Answer 28

I personally would be the smaller stuff and snowball the payments to pay down the rest. That way you don’t have 17 things to pay each month.  

Answer 29

I would py Capital One and your #2 student loan.  

Answer 30

Pay down the 0% interest that has the date in May because generally once that date hits, all of the accrued interest from the life of the loan hits. it could be your balance jumps up greatly!  

Answer 31

I’d pay Cap 1 and Loan 2 and what’s left towards loan 1 so it frees up money to pay others. I’d pay off lowest balance first for that reason

Answer 32

Bottom two then you have an extra 50 bucks to put to student loan. With no interest it will go fast.  

Answer 33

Capital one then the rest on BOA.  

Answer 34

Smallest to largest, that knocks out the bottom 3 and you can really get going on your debt snowball.  

Answer 35

Pay off Cap One and rest toward Discover! Believe me, CC debt is the worst and never seems to end!  

Comments

@polk83274 I second this. It will free up money in payments that you can snowball toward other payments too.  

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@cruse very true!  

Answer 36

Depends if you want to use debt snow ball or avalanche method. I like debt snowball because I see a difference faster and that keeps me going.  

Answer 37

If you’re paying a lease on a phone I would pay that off to save on monthly cell bill.  

Answer 38

Pay off Cap One and put the balance to B of A. Those interest rates are super high and it will feel good to completely pay off and a huge chunk of the other. Then take the $25 you're paying on Cap One and apply to B of A with any extra funds.  

Answer 39

I do highest APR, so I would get rid of the capital one and put the rest to BOA

Answer 40

Smallest to largest

Answer 41

Pay off cap one and the rest on BOA

Answer 42

I would as well pay off cap one and the rest on boa