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Old 03-15-2009, 12:18 AM
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cptacek cptacek is offline
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You don't have to pay anything on the student loans yet, so I would take the money that you are currently sending to them and put it all towards the credit card. Why pay a loan that is 6.8% interest when you are paying 14.99% interest on another larger amount?

I would also just send the minimum to the equity line and put that extra $77 to the credit card. 3.25% interest is cheap money.

I would make minimum payments to IKEA until July, and send all the extra to the credit card. In July, make a lump payment to pay it off (if you seriously and consistently pay $2k to the credit card, you have plenty to make that one time payment). This way, you are knocking down high interest debt immediately but you have the means to pay it off in July. Also, I would make sure to pay it off in July and make sure it posts before the August deadline...don't take chances, because sometimes those furniture loans will accrue all the interest from when you took out the loan if you miss their deadline, which is often before the monthly payment is due.

After that, go for the student loans based on interest (highest to lowest). If two loans have the same interest but one is less than the other, pay the small amount first.
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