Sweet Pea
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It depends on the interest rate of each. Look at the interest rate on the credit card and the interest rate on the car loan. The credit card probably has a higher interest rate so that is where you should put any extra money. This way, you are getting the most out of that extra money!
God's best to you! |
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Holly R
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Payoff whichever has the highest interest rate....which is most likely your credit card. Car loans are an assumed expense to see on a credit report...credit card debt can bring down your credit score. You're always better getting rid of credit card debt. |
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visvardis
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whichever has a higher interest rate usually a credit card |
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Manda
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This is completely dependant on whether you have an early payoff penalty or not. The interest is charged on the principal, so if you dont have a payoff penalty, then yes, it's better to pay extra. |
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wayfaroutthere
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Usually credit card debt is a higher interest rate and should be paid first. If you can be disciplined enough to not spend it, it may be a good idea to keep some cash on hand so that your next emergency doesn't make you put money right back on the card or miss a payment. |
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Dont_taze_me_bro
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You need a multi-step program to your finances. First, you need $1000 in the bank for emergencies. Second, cut up your cards, ALL of them. Next, you need to list all of your bills (balances) lowest to highest. Pay the minimum on all bills. Then pay off the smallest balance first, once that's done, roll that amount tot he next and so on. In the debt world, interest isnt as important as a determined effort to eliminate ALL of it. |
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Mz.. K........
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Pay which ever has the highest interest rate, probably the credit card. |
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Banbalan B
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Depends on the interest you are paying. Most certainly, Credit Card's interest is much more oneraous than many other forms of financing. Also, when paying credit cards, your minimum payments do go down. I am inclined to say pay your credit cards.
Regarding your car loan, paying extra towards principal (if allowed by lender without penalties - so call them first) will reduce your principal and save in interest, but will not reduce your minimum payment. Instead, it will shorten the period of the loan. So you would pay it off a sooner. |
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blahblahblahblahblah
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I would pay which ever has the higher interest rate. If you do pay extra on your car make sure it is going toward the principle balance, not your regular balance otherwise you aren't eliminating any interest payments. Look at the back of your bill in the fine print to find out how to pay toward the principle balance or call the financing company and ask them. Cause they will have a seperate address to send extra payment toward principle to. |
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Crickett888
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Of course,iv'e never been able to do this but i have heard that it will go towards the intrest pay away girl! |
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Genevive D
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It can really save you time to just get an automobile loan price online to check out what todays rates are. You might be really happy. Also if your credit is not the best, a lot of them are more able to work with you.
What I usually tell folks is that an online quote at http://auto.lowratetoday.com is worthwhile. |
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