+9 votes
by (240 points)
Hey everyone!  I was hoping to get some advice.Hey everyone! I was hoping to get some advice. Currently i have a car loan (about $33, 000 left) and my student loan (about $15, 000 left). I have my student loans deferred and as of right now they aren’t accruing interest on them because of the coronavirus bill. When they are not in deferment the payment is about $120 and My car loan is about $500 a month. Should I throw whatever extra money I have and try to get the student loan paid off or throw it all at my car? My goal was to have both of these paid off in the next 2 years. I’m just trying to figure out the best way to do so. Thanks!  
Hey everyone!  I was hoping to get some advice.

9 Answers

+5 votes
by (3.4k points)
 
Best answer
Sell the car. Bombard the student loans with extra payments. Get out of debt
+7 votes
by (16k points)
Yes! Take the extra cash and throw it at the car!  
+6 votes
by (2.3k points)
I would throw it at the car because once you get it paid off if you take the $500 payment and put it on the student loan it will pay off faster
+8 votes
by (980 points)
Your car interest loan is most likely hghter. So I would concentrate the majority of your money towards lowering that debt first.  
+9 votes
by (1.5k points)
I put extra payments to the car because student loan interest is tax deductible.  
+9 votes
by (8.3k points)
Hmmm. usually I’d pay the smaller debt first and it doesn’t get wiped out if you ever were to file bankruptcy so that’s what I’d consider first. And you’ll have it paid off sooner and then you can use momentum to your car. Another consideration that you may have reasons for not doing but nonethess. is selling your car and buying a car that’s a lot less, and pay off your debt quicker.  
by (3.4k points)
@spiegel That is what i would do.  
+4 votes
by (6.2k points)
I’d work on the car since student loan interest is tax deductible.  
+5 votes
by (2.1k points)
I would throw all extra at car loan right now. Try to get it as low as you can u til student loans go back in repayment.  
+5 votes
by (2.4k points)
Without knowing some other key pieces of information like your income and other obligations, it's hard to say one way or the other. Do you love the car (and it's payment) so much that you are willing to endure keeping it? Is selling it and finding something less expensive an option you've thought about? It seems like a major roadblock to your success at this point so it's worth considering if it gets you to financial freedom faster (because that's the point, right? ).  
by (8.3k points)
@lympho1 such sensible feedback and approach! I love it! Are you a counselor or something?  
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