I have a chunk of change that will pay my car off, or I can use that toward my student loans which will only put a dent in that. Which route would you take and why?
Thanks!
Thanks!
This, pay off the car then use that freed up money on the student loan payment.Debt snowball. Pay off the car, and then pay that monthly car payment + the regular student loan payment towards the student loans.
Payoff the lower balance, use those payments on the other.
Debt snowballing works.
This, pay off the car then use that freed up money on the student loan payment.
I'm with these guys.Debt snowball. Pay off the car, and then pay that monthly car payment + the regular student loan payment towards the student loans.
Good question as I am in a similar position, just with payoff's flipped.
Depending how close the car is to its original payoff, I would be a little leary as it could cause a big hit to your credit score. If the car payment is noticeable, and the possibility of a credit hit isn't a concern, I'd lean toward paying off the car.
I think that paying off everything will hurt credit is a lie from the credit companies. I paid off everything is 2008, and I also closed all credit accounts, which they also say is a no no. My credit score went from 720s to 780s.Odd. When I paid off my vehicle roughly 9 months early I noticed a nigher score the following month or was it the second month. Either way I was pleasantly surprised.
I think that paying off everything will hurt credit is a lie from the credit companies.