What to pay off first?

**Lostsoul33** · 03-11-2006, 05:17 PM

Re: What to pay off first?

What are the interest rates and balance owing on the credit cards and student loan? When are your property taxes due? Can you put so much away each month in order to prepare for this? Why do you want to change your homeowners insurance from monthly to one full payment? I don't think that's the best option if you don't have the money sitting there right now. JMO though. What are some of your other expenses and how much free money do you have to put onto these loans?
Sorry a lot of questions but if i don't ask them...someone else will. It will help us to give you our best opinion on what we think you should do.

**midlight21** · 03-11-2006, 06:24 PM

Re: What to pay off first?

The balance total on all 5 CC's is about $10,000 and student loan is $10,000. I don't know what the interest rates are on them. I guess I should check, huh? Property taxes are due now. My goal is to pay off debt in the quickest time possible and reduce the number of monthly payments I have to make. I just got my bonus from my job plus tax return money coming in...that'll be about $7,000 total to put toward some of this debt.

**Lostsoul33** · 03-11-2006, 06:53 PM

Re: What to pay off first?

Okay, well property taxes should definetely be one of your first priorities. Next I would check and see what your interest rates are on your credit card and student loan

**Tree0164** · 03-12-2006, 06:45 AM

Re: What to pay off first?

Here is what I would do
1. Stop using the credit cards at all
2. Pay off the property taxes
3. Establish a small emergency fund of $1000 or so.
4. Focus on using thesnowball method Here is how it works
You take all the credit cards that you have and look at the highest interest rate. This is the one you are going to tackle first. Pay as much money to that one and pay the minimum amounts on others. Once you get the first one paid off you then focus on the second one. You snowball the payment you were making on the first one to the second one.
5. Focus on the student loans.

I also recommend reading Dave Ramseys's Total Money Makeover. He offers some good advice for getting out of debt.

**Ima saver** · 03-12-2006, 08:05 AM

Re: What to pay off first?

Some good advice from tree!

**midlight21** · 03-12-2006, 12:16 PM

Re: What to pay off first?

Thanks for the advice! I've looked up my interest rates and I have a plan written down for getting rid of these credit cards.

**Lostsoul33** · 03-12-2006, 04:19 PM

Re: What to pay off first?

That's great! Good luck with your plan Clarissa

**CJsoccerchic** · 03-12-2006, 06:02 PM

Re: What to pay off first?

Good luck!

**On Track** · 03-20-2006, 12:18 PM

Re: What to pay off first?

Good luck. We are in a similar position and have made a little progress. Sure feels good to see the progress even if it is slow.

**Ima saver** · 03-20-2006, 01:40 PM

Re: What to pay off first?

Slow and steady wins the race!!

**ScottO** · 03-20-2006, 10:37 PM

Re: What to pay off first?

Before you start accelerating the payments on your student loan, first find out the interest rate. Many times they are really low since they are federally subsidized. You may be better off paying down the principal on your mortgage.

Also, you are allowed to refi your federal student loan once. Find out from your lender if you can get a lower interest rate.

**markio26** · 03-21-2006, 09:24 AM

Re: What to pay off first?

all of the advice above is great... follow jeffrey's advice on his emails... sign up for the newsletters... great info... if you change your outlook on the debts to a positive one, some expenses are good, if you can write them off, like business expenses, etc.... money is only a tool.. life is a game, you just have to learn how to play it.. don't spend alot of time worrying about bills... set up your game plan and try to stick to the plan.. everything else will fall into place.. best wishes...

What to pay off first?