Principessa1284
<font color=royalblue>The girl whose MIL brought h
- Joined
- Oct 10, 2005
I've been staring at numbers all night, so my brain is about fried and I need a second (or third.. forth..) opinion! DH and I sucessfully paid off all of our credit cards about a month ago (yay!!! ) right before we bought a house. So the only debt we have right now is the mortgage, a car payment, and student loans. Since his student loans are a lot higher than mine and are on an income-based replayment plan, we're going to leave them be for the moment and just pay the minimum. The question is, what should we sock all out money towards now? My remaining student loan, or the car payment?
My student loan is down to $5,926 with an interest rate of 4.89%. This loan is also on an income-based repayment plan because a) I don't make much, and b) it at least keeps them from changing everything on me whenever thye feel like it. They liked to frequently change the interest rate, term, and monthly payment as they please since it's an adjustable. The minimum is $55/mo.
The car loan is at 13,560 with an interest rate of 3.99%. It's a fixed-rate 60-month term with about 3.5 years left.
I figured it would be better to pay the student loan off first since from either debt repayment camp it sounds better - the highest interest rate AND the lower balance. I've been mulling it over too long, and now I'm questioning my decision and thinking that the car loan might be better to pay off early since it's such a higher payment. My head hurts from trying to think it over.. which one is better? Should I go with my gut and pay the student loan? Or the car loan?
My student loan is down to $5,926 with an interest rate of 4.89%. This loan is also on an income-based repayment plan because a) I don't make much, and b) it at least keeps them from changing everything on me whenever thye feel like it. They liked to frequently change the interest rate, term, and monthly payment as they please since it's an adjustable. The minimum is $55/mo.
The car loan is at 13,560 with an interest rate of 3.99%. It's a fixed-rate 60-month term with about 3.5 years left.
I figured it would be better to pay the student loan off first since from either debt repayment camp it sounds better - the highest interest rate AND the lower balance. I've been mulling it over too long, and now I'm questioning my decision and thinking that the car loan might be better to pay off early since it's such a higher payment. My head hurts from trying to think it over.. which one is better? Should I go with my gut and pay the student loan? Or the car loan?