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Old 03-05-2019, 10:54 AM   #1
Cowspoo
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Loan payoff trade-off

:Hi: guys, what's your opinion on which loan I should payoff? I'm having trouble making a decision.

Car payment 24,000 $441/month @ 3.9%
Student loans $24,000 $297/month ($8,000 @ 5.3%, $16,000 @ 3.5%)

I can make $1,000/month extra payments on something.

The 8k 5% student loans would save me more money, but hold up the $441/month for 8 months longer on the car loan.
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Old 03-05-2019, 12:59 PM   #2
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Pay off the $8,000 @ 5.3% first and then pay off your car. GL
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Old 03-05-2019, 03:31 PM   #3
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Thanks for your time
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Old 03-05-2019, 05:49 PM   #4
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ya, knock out the 8k @5%. first, its the highest interest, second, sometimes it nice to eliminate a short loan, just to get it off the books. in this case its both.

then i would go car, lastly the student 3.5%
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Old 03-06-2019, 09:59 AM   #5
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Thanks again. I'm super surprised 97 views and no one suggests to pay the car off and release the 441 to put towards student loans. Anyways, thanks everyone!
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Old 03-07-2019, 06:53 AM   #6
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I would pay an extra $500 car payment and save $500 each month for 3 months.

Then I would pay $500 extra per month to smaller balance student loan and save $500 per month.

Your interest rates are not silly and paying car longer is good for credit.

I assumed you have no other debt...

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Old 03-08-2019, 02:52 PM   #7
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Hey Glock,
You are correct. These are my only debts.

Your strategy is $500 extra every month until the car is paid off, then $500 extra until the student loans are finished. Putting the rest in an IRA or something? Solid strategy. My credit is already 806. So I'm not trying to improve that too much anymore.

Cheers!
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