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Old 03-06-2009, 11:20 AM
ksluis62 ksluis62 is offline
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I ran the numbers on DueMinder to see which course makes more sense mathematically: Pay off $11,000 car debt versus pay down $11,000 in credit card debt. With that particular mix of intro rates, and a commitment to pay $740 per month (current minimums plus car payment), there is no real difference in pay off time. 3 years, 3 months for both plans. This assumes Chris sticks to the plan in both cases.

You can see the payoff schedules in my blog here: A Tale of Two Plans

After seeing this, I'd have to lean towards recommending pay off of the credit card debt first, as there's no compelling reason to go against the traditional recommendation to pay off unsecured debt before secured.

noppenbd, you make a good point about cash. It definitely makes sense to preserve cash in these uncertain times.
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