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What to pay off first????

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    #16
    Credit Card first... no brainer. It is totally unsecured.

    Remember, though, don't only pay it off.... stop using it too!

    If having a credit card with a zero balance is bad for your credit, I'd choose having bad credit

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      #17
      Is the car loan front loaded?

      Many times car loans are font end loaded; meaning all of the interest was charged up front when you first purchased the vehicle. This means you wouldn't really save any money by accelerating or increasing your car payments bc you're going to pay tube same amount regardless. With that in mind, I would pay off the card and begin saving or investing the $100\mth

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        #18
        Originally posted by donteverquestionmyfanhood View Post
        Hello, this is my first time using this site and hope I am posting this under the correct section. Here is my situation...

        Ive finally managed, over the course of a year, to stop spending money on stupid things and to save. I am happy to say that as of today I have ~10000 between my checking and savings accounts. This is where I need some advice...I have a credit card balance of ~4700 with an interest rate of 8.9%, and a car loan with ~8500 with a interest rate of 5.4%. My minimum payment on the card every month is roughly around 100 dollars a month, and the car payment is 325. My question is, what should I pay off? What helps me the most to get rid of? Also, the card has a limit of 10000 and I hear that it is bad to have a credit card with no balance since you're not using it.

        Thanks for taking the time to read this, and I hope I can get some good responses.
        I'd pay off the credit card now. Which leaves you about $5,000. Don't touch that money, that's your emergency fund.

        Now you'd been saving about $800/month + $100 (for the credit card) +$325 (that you're already paying for the car)= $1225 and you'll have that car paid off in 7 months.

        Twenty months from now you'll have 20K with which to either A) fill out your emergency fund or B)start building wealth.

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