Re: Which bill would you pay off first?
Well normally Sweepsplayer I'd agree a loan is a loan...but her car loan is for four years. Now this is different for everyone but lots of folks can wear out a good new car in 4 years time (which is her remaining time). I'd hate to be paying on a car that was already worn out because I threw money at my house. With the car maybe she'll be able to sell it for a little cash when she goes to buy another one.
If it is less likely that she'll be moving in 4 years then I'd still say the car...because she's got 15 years left on the HELOC. AND as pointed out the interest on the HELOC is deductible. Once she got the car paid off, I'd split the old car payment in half and pay half of that on the HELOC and put the other half back to buying my next car with cash.
That's my reasoning (it maybe faulty) ...but wouldn't she be better off if she put any of these theories to the calculator test w/some actual figures and projections??
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