I have a $8900 car loan @ 1.90% and I’m about to start paying off student debt. 12k of student debt, each with less than 5% interest. What’s the best way to pay off these two loans?
I have a $8900 car loan @ 1.90% and I’m about to start paying off student debt. 12k of student debt, each with less than 5% interest. What’s the best way to pay off these two loans?
Well student loans don’t get repoed, cars do for missed payments. So focus on allocating money for the car’s monthly bill first. Then figure out what’s the minimum you Have to pay on the student loans to meet the requirement.
Start there and if you got more money on the budget then pay some more in the student debt.
That said with today’s crazy car market, what’s the sale value on your car?
Yeah focus on the car first and try make min payment to student loan and car losses value so you want pay it off as fast as possible. One car pay off put what you pay on car into pay the student loan
If you don’t have any trouble making both payments and are shooting to be debt free quickly pay the minimum on the car and hammer out the 12k of student debt as fast as possible then pay off the car.
Pay the minimum amount for the car. Take rest of free cash flow to pay off higher interest rate student loans first. They cost you the most interest so pay them down
Don’t touch the car loan. Peanuts worth of interest over the years. Go hard at the student loans.
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