Quote:
Originally Posted by willowstudios
Hi, and thank you for replying.
Yes, I know it's a lot of credit card debt. I ran into major issues in the past year, so I had to use the credit cards. However, I have the cash to pay off the Auto Loan which would save me $300 extra a month. That would pay almost all of the credit card debt...plus, I'd have an additional $300 to throw at the credit cards too.
The main reason I'm thinking of paying off the Auto Loan is because I don't want to have it repo'ed if I can't make payments. I'm doing fine right now, but what if I lose my job? If I have credit card debt they can't take the vehicle while I recover and get a job. But, if I miss car payments...I risk losing the car!
It's more about transferring debt instead of paying it off..I should have a different title for this post.
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your not thinking of your money right.
You can sell the car if you lose your job and not lose so much money
but your credit is maxed, so if you lose your job you will have no source of getting access to money with credit maxed out.
Always pay off unsecured debt first. Are you paying 20% of gross pay to debts (not including mortgages)?