sassylady1262
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paying off the credit card. |
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Francesca G
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It depends on what the interest rate is on your student loan verses your credit card. Whichever has the higher interest rate is the one you want to pay down the fastest. Once you have that one paid off - then take the money you were using to pay on the 1st debt and add that to the amount you are paying to the second debt. If you do this, you will have your debts paid off quickly. Don't be a slave to interest. Make your payments on time and build a good credit rating and you will get offers for 0% interest on credit cards and then you will have something in case of emergency. After you have your debts paid - then set some goals financially for yourself and put money into savings, retirement and an emergency fund (for times of unemployment or unexpected expenses). Your life will be far less stressful if you can manage your money wisely and stay out of debt. Always ask yourself if something is a need or a want before purchasing and don't purchase on inpulse. Search things out and get the best deal for your buck. |
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man_about_the_net
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CC card. That 1.99% will not last forever. And, if you are ever late, that rate will jump to 22% Ouch.
If you are late on the student loan, unless you agreed to it, it will stay at 3.99% |
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purplemollies
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It is better paying off your credit card if the balance carries higher interest rate. If you are just out of school or still in school probably there is no interest (until 6 months after the graduation if it was subsidised loan). You still have to pay interest in unsubsidised student loan but it can be consolidated and interest rate would be cheaper than in credit card. Also, interest paid in student loan is tax deductable, whereas credit card interest in not. Go to website below for more information: |
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smonical
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Depends--I'm assuming your credit card rate of 1.99% is its APR, not a monthly rate. Also I'm assuming your student loan rate of 3.99% is its APR. How LONG will the credit card interest be only 1.99%? Is that a special limited time rate? If so, it might be best to pay this one off first, before the rate becomes something like 10%-18%. If you've got the 1.99% rate locked for a long time, then you could go ahead and pay off the student loan. |
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DKlyde
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credit card; the interest is higher and credit card companies are out of control. |
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mopargirl
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Pay off the credit card, chances are you are paying through the nose on interest, and I'm guessing that the interest on the student loan is not near as much!! |
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katr
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I would pay off the one with the higher interest rate. |
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celticwoman777
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You better take a look at your student loan. I heard on the news last night that they are raising interest rates effective July 1, 2006. Check out this link to NBC News for more info: http://www.msnbc.msn.com/id/12835297/ Hope this helps you determine which you should pay off. I think paying off your student loan would be wisest. You'll be saving a lot of money in the long run. |
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hichefheidi
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if you plan on filing bankruptcy, pat off your student loans, because bankruptcy won't erase your student loans. If you aren't going to file for bankruptcy, pay of your credit cards, because the interest rates are higher. You can also take out a forbearance on your student loans, and not pay them for up to 12 months, and use that money to pay off your credit cards, and then start paying again on your student loans. I also don't think that student loans count against you on your credit report, like credit cards do. So if you take out a loan, it will be easier with student debt, rather than with credit card debt. Hope that helps |
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darvilleerica
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Pay off student loan...It is a federal loan and they want their money 1st. Plus, the interest rate is higher, plus with my experience, student loans have a higher balance. If you are refinancing your mortgage, you should pay off the bill with the highest monthly payment. Mortgage companies have this thing called a Debt-to-Income ratio which effects how much of a loan you can get! If you need help with the refi, my name is Erica and my email add. is darvilleerica@yahoo.com Mortgage Broker in Virginia. |
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Ranto
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If you are really getting those interest rates, you are better off investing your money at a higher rate (even something safe like T-Bills) and paying them off as slowly as possible.
Otherwise, pay off the loans with the highest interest rates. |
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Introspector
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What ever has the highest interest rate silly |
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djuai
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i would say consolidate your debts in a lower interest account. The credit card seems worse because it has higher interest. In my opinion you should borrow money from a lower interest source and pay that off. |
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Goblin g
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Paying off your credit card would be better. While both go on your credit report - a credit card will be with you longer (for all of your living expenses). If possible, you can combine your Student Loan with your credit card and then just double the payments to your credit card company. You will, in essence, be eliminating one bill on your credit report, as it will show that your Student Loan is paid in full.
Have a lovely rest of the day. |
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Forget-n-forgive forget it!!
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Your credit card is not tax deductible, but the interest on your student loan is. If you put your credit card in with your mortgage you are getting two tax breaks. Credit cards usually do not stay at that rate for very long. Look at the fine print. Payoff the credit card. |
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Reference Librarian Amy
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Even though the student loan has a higher interest rate, paying of the credit card first would be better. While this seems counterintuitive, it will be better for you in the long run.
The interest that you pay on your student loan is tax deductible. Therefore, it would behoove you to pay off the credit card debt first because that interest and balance is merely an albatross around your neck. Since 2002, interest paid over any period of time on a qualified education loan is deductible.
You should receive 1098 forms from your lender around the time you receive your W-2 forms from your employer.
However, if you are married and filing separately, you can't take the deduction.
Good luck in paying off your debt! |
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RuralSk
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Whichever has the highest rate of interest. |
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larry1dart
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Pay off the credit card first. Student loans are easier to consolidate later, and while you are still in school you do not have to start paying them back, if it is a government loan. Also, you get to deduct certain interest on school loans but not credit card interest. |
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Jeffrey W
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Pay off the highest interest loans first. There are some execptions. Some student loan interest can be tax deductible, making the actual paid rate even lower. If the 1.99% rate on your credit card is for a limited time, you may want to read the fine print on the rate. If the balance is unpaid after a specific period of time as dictated in the fine print, it may revert to a higher rate and add back interest at that higher rate. The best way to leverage those special rates is to pay the balance in time or it was cost you much more.
Both the rates are very favorable, a may actually be better than the rate of your refi (even after the tax benefit has been added). Something to consider. |
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Nick C
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Credit card wojn't be 1.99 forever! |
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