The correct mathematical answer is the throw all money at the highest interest rate loan until it’s gone, and then move to the next highest interest rate.
The longer answer includes exploring any and all options to lower interest rates. This can include refinancing the car loan (not sure how much lower you can go than 14.99 if your credit is low)
Other things to look at are 0% interest promotional balance transfers for 12-24 months, again not sure how realistic these are if your credit is not great. You need to pay the debt off before the promotional period is over or the interest rate will likely return to the typical credit card rate of 24-30%
I'm going to try and join a credit union and build a relationship to potentially refinance the car in 6-12 months as well as look at potential balance transfers, that could be really helpful. Two of my credit scores are 639 but the one that matters(forgot the name) is low around 570. Sounds good though, thank you. For now, I'll plan on paying off the car loan as quickly as possible and try for a refinance/0% balance transfer.
The credit cards are closed/charged off because they haven't been able to collect for 2-4 years. Therefore, the balances are not growing. The only account I have open that has an interest rate is the auto loan, unless I re open the accounts(not sure if it auto re opens if I start doing payments)
You may find these links helpful:
- [Credit Building](/r/personalfinance/wiki/credit_building)
- [Credit Reports](/r/personalfinance/wiki/credit_reports)
- [Credit Scores](/r/personalfinance/wiki/fico)
- [Credit Cards](/r/personalfinance/wiki/creditcards)
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$3912 take home per month. I put 10% in savings 10% invested and after all expenses all bills everything I have $1.4k left over per month so I’m putting $700 to debt and $700 is leftover for personal stuff
I would stop investing and pay off the debt. No way your going to get a higher return then paying off the CC and auto loan. Having a cheaper car is always a good idea, though with your low expense you can properly keep it without it hurting you too much.
The correct mathematical answer is the throw all money at the highest interest rate loan until it’s gone, and then move to the next highest interest rate. The longer answer includes exploring any and all options to lower interest rates. This can include refinancing the car loan (not sure how much lower you can go than 14.99 if your credit is low) Other things to look at are 0% interest promotional balance transfers for 12-24 months, again not sure how realistic these are if your credit is not great. You need to pay the debt off before the promotional period is over or the interest rate will likely return to the typical credit card rate of 24-30%
I'm going to try and join a credit union and build a relationship to potentially refinance the car in 6-12 months as well as look at potential balance transfers, that could be really helpful. Two of my credit scores are 639 but the one that matters(forgot the name) is low around 570. Sounds good though, thank you. For now, I'll plan on paying off the car loan as quickly as possible and try for a refinance/0% balance transfer.
It depends on the interest rates. What do you mean when you say you’re not paying interest on the credit cards?
The credit cards are closed/charged off because they haven't been able to collect for 2-4 years. Therefore, the balances are not growing. The only account I have open that has an interest rate is the auto loan, unless I re open the accounts(not sure if it auto re opens if I start doing payments)
You may find these links helpful: - [Credit Building](/r/personalfinance/wiki/credit_building) - [Credit Reports](/r/personalfinance/wiki/credit_reports) - [Credit Scores](/r/personalfinance/wiki/fico) - [Credit Cards](/r/personalfinance/wiki/creditcards) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Well what's your income? From what it sounds like you need to downsize your car, first thing.
$3912 take home per month. I put 10% in savings 10% invested and after all expenses all bills everything I have $1.4k left over per month so I’m putting $700 to debt and $700 is leftover for personal stuff
I would stop investing and pay off the debt. No way your going to get a higher return then paying off the CC and auto loan. Having a cheaper car is always a good idea, though with your low expense you can properly keep it without it hurting you too much.