What to pay off first????

[croland]

That's great!

If I had the choice, I would pay the credit card off, close it out and then apply the payments you were making to the payment you are making to your car. I would also take the remainder of the amount you have after you paid your credit card off and apply it to the principal of the car.

Chris

[graceful]

Well congratulations on building up that EF!!

I don't think that it's BAD to have a credit card with no balance on it. Many people pay off their balances IN FULL every month. That's the way to do it.

However, the fear at this time is that if you use most of your EF to pay off your CC balance that the CC company might lower your credit limit to a ridiculous amount like $200 and you won't have your EF or a credit line to fall back on if anything should happen.

I'm not sure what I would do if I were YOU.

However, if it was my decision. I would try to keep my EF in tact and try to throw as much money at the CC balance as possible to pay it off first and as quickly as possible and hope that they don't lower your credit limit to next to nothing. If they do, you still have your EF to fall back on.

1) The CC interest is higher and can go up at any time so I would feel that I would save more on the interest.
2) The CC balance is lower so the pay off should be quicker than the auto loan.

Good luck whatever you decide. At least you made some sort of decision. Many people don't save and they don't plan on paying off anything except the minimums. So, you are already ahead of the game.

[donteverquestionmyfanhood]

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.