For the Financial Folks

[tfc3rid]

OK, so I have 2 contracts with DVC that I'm in the waning stages of my 120 month finanacing.

Well, I have about $4,100 and $3,100 in principal remaining. I am looking into a purchase of either 150 SSR or 150 AKL points (doesn't matter) for a new financing plan (120 months again) with most liely a 3,000 down payment...

My question is, should I pay some of the principal on the two existing loans or should I pay off one of the loans in entirety?

Thanks.

[JodyTG]

If it were me, I'd pay off my existing loans before getting another one.

[pilferk]

OK, so I have 2 contracts with DVC that I'm in the waning stages of my 120 month finanacing.

Well, I have about $4,100 and $3,100 in principal remaining. I am looking into a purchase of either 150 SSR or 150 AKL points (doesn't matter) for a new financing plan (120 months again) with most liely a 3,000 down payment...

My question is, should I pay some of the principal on the two existing loans or should I pay off one of the loans in entirety?

Thanks.

Personally, I'd pay off one of the loans, first. It's almost always better to not be paying interest, entirely, than to be paying interest on lesser amount with compounding interest. In addition, you'll eliminate one payment entirely by paying off one of your loans. If you just make additional principle payments (pay a bit on each), you'll still be responsible for the FULL payment on the 2nd loan...you'll just pay it off faster than you would have.

If you eliminate your payment on the 3100 loan, and then put the "saved" payment (or a portion of it) toward the $4100, that would be optimal, I think.

[tfc3rid]

I paid off both loans today... Now I can focus on my next DVC Add-On Adventure.