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Old 07-29-2006, 09:14 AM
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b4freedom b4freedom is offline
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Default Re: feedback wanted: big loan or car loan first?

Quote:
Originally Posted by Gruntina
1. Big Loan: $14,000.00 @ 9% flat interest (This one started at $65,000.00!!)
2. Car Loan: $4,566.21 @ 3.95% interest

Is this a bad idea since the interest rates has a 5% differences?
Pay off 9% loan first. Then, only make minimum payments to 3.95% loan. Instead, apply the extra into a high earning interest account or IRA earning more then 3.95%.
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