Question

Okay question: Interest Rate is not a factor here, I know it is always to pay highest interest rates off first. I am long term planning as we may not get a pay raise next year (teacher) as we planned and furlough some days so even less pay. and i do have a part time job so I am not looking for that advice. So with that in mind do I: PIF my car loan: monthly payment is $390 OR Pay off 3 credit cards that monthly minimum payments total around $190 If I was to consider interest I know it would be the credit card. But with a possible pay cut would it be smarter get rid of a larger monthly commitment?  

Answer 1

I personally pif my car.  

Answer 2

I’d go go car loan. $390 is a good chunk of change to help pay off those cards.  

Answer 3

Get the car gone with the potential of less pay

Answer 4

I always get rid of whatever frees up the most money monthly. Definitely do the car loan!  

Answer 5

If you're just going to snowball the payment, the payment amount doesn't matter, because you'd be paying the same amount towards debt either way. but the paying the one with lower interest first will take you longer. If you're worried about cash flow and needing the money for something else, it may be better to free up the higher payment.  

Comments

@patently YeA and the $190 is just paying the minimum so essentially that pays nothing because of interest on the cards being higher. But the larger cash available Incase we may get the pay cut is a concern I have.  

Answer 6

Car for sure

Answer 7

I'd PIF my car for sure.  

Answer 8

PIF car loan

Answer 9

Another vote for the car! You can toss that to your debt in the mean time and if that pay cut happens, you know you have that wiggle room even if it means a smaller debt payment

Answer 10

Car hands down. It will be all yours and give you more each month to work with!  

Answer 11

Car loan

Answer 12

Thanks! Those aren’t my only debts. Just the only debts that could be PIF with the amount of money that it would be. And I was considering the car too because of the larger amount of free money Incase.  

Answer 13

We did our car first. it freed up the most monthly pay out which freed up to pay cc debt down faster. Plus we now have the title to the car. it was such a freeing feeling.  

Answer 14

Pay off the lowest balance first, roll the paid off cc payment to the next . Debt Snowball

Answer 15

Pay off the car and then the following month take and put either 40 or 90 aside for maintenance and the rest as extra payments towards the cc

Answer 16

Car for sure

Answer 17

Lots of advice here but I am curious why they would furlough a teacher? We are dying for staff at our school!  

Comments

@unknow so it would be like normal 190 days and that’s your salary so it would be 180 days of work and the salary would reflect that. So it may come from 4 day work weeks or no planning days. Things like that. Not truly getting rid of a teacher. I only know because they did it after the recession my friend said in the county I’m working in.  

Answer 18

I’d get rid of the smallest balance first. That’s my method.  

Comments

@fervent even with a possible pay cut.  

---

@sannyasi79912 When you can. I like the psychological boost of having fewer creditors. So I’d get rid of the lowest balances and have them gone. It will feel better to just have one or two then that you continue to chip away at. Best wishes!