Wwyd?

[paysensmom]

We have a credit card with a balance of $7300 with 6% interest and a loan for $3191. 99 with a 17.75% interest

My husband wants to get the CC paid of first since the loan is a set payment. I was thinking we should pay the loan of first since the interest rate is so high, plus it is the smaller amount.

I was thinking we could pay off the credit card and then pay the balance of the loan with the CC. This way, the balance we owe would still be the same as if we paid the CC and still made payments on the loan. We would just be paying less interest. We pay $158 each month right now toward the loan.

What would you do?
thanks so much

 

[lovesmurfs]

We have a credit card with a balance of $7300 with 6% interest and a loan for $3191. 99 with a 17.75% interest

My husband wants to get the CC paid of first since the loan is a set payment. I was thinking we should pay the loan of first since the interest rate is so high, plus it is the smaller amount.

I was thinking we could pay off the credit card and then pay the balance of the loan with the CC. This way, the balance we owe would still be the same as if we paid the CC and still made payments on the loan. We would just be paying less interest. We pay $158 each month right now toward the loan.

What would you do?
thanks so much

You should always pay off the lowest balance with the highest interest rate. That means you should pay the loan off first. Then put the money you were paying on the loan each month to the credit card.

That way you're seeing movement ahead in your efforts to get out of debt. Best wishes.

 

[secretpantssam]

You should always pay off the lowest balance with the highest interest rate. That means you should pay the loan off first. Then put the money you were paying on the loan each month to the credit card.

That's what I would do. That way you end up paying less in the end because you're paying less interest.

 

[scootch]

ditto to the above posters. I would also cut corners whereever I can to put more towards getting rid of your debt. Good luck.

 

[andrews_dad]

17% interest? This one is a no brainer. You have to attack that one first. Min pay the CC and toss every last extra penny at the 17% one. In the meantime call the CC company and make sure they can't do better for you than the 6%.

 

[paysensmom]

Is 6% high? I thought that was pretty good. I will call to check though for sure! Yeah that 17.75 interest is crazy. We made the first and hopefully last BIG financial bad decision almost a year ago. We were planning to remodel the kitchen and somehow ended up at the Direct Buy place for a presentation. Well, we went ahead and signed up and didnt even look at the loan details AT ALL! If we did we wouldnt have done it. Plus, we haven't even used Direct Buy and probably wont
So, here we are paying for this for nothing. We won't make a mistake like this again. YICK

 

[allison443]

Is 6% high? I thought that was pretty good. I will call to check though for sure! Yeah that 17.75 interest is crazy. We made the first and hopefully last BIG financial bad decision almost a year ago. We were planning to remodel the kitchen and somehow ended up at the Direct Buy place for a presentation. Well, we went ahead and signed up and didnt even look at the loan details AT ALL! If we did we wouldnt have done it. Plus, we haven't even used Direct Buy and probably wont
So, here we are paying for this for nothing. We won't make a mistake like this again. YICK

Oh my gosh, is that how much a direct buy membership costs? I always wondered!