Payoff question

[mrmumbels]

I have a car loan balanced at 8k with a 5.9% interest and I have a home equity at 17k with a 4% interest. Which would make more sense to pay off first?

[Like2Plan]

Assuming they are both fixed interest, I would target the car.

[zakity]

Yep, the car... It has a higher interest rate. It is also the lower amount that is owed.

[creditcardfree]

I agree: the car. Knock it out first then hit the home equity loan.

[JourneyCC]

Car loan is not helping you at tax time. It is also a depreciating asset. It really can affect your FICO score and debt/income ratio value as well. This is a no-brainer.......pay the car first.

[kgloh_23]

Pay car loan first! Car is depreciate and interest is higher! then the balance money pay off home equity or invest with better return rate (more than 5% to beat your 4% home interest)
Assume loan interest rate is fixed.

[jasonnoguchi]

Car. Period.

[EconoMutt]

Definitely pay the car first.
That's what I'm doing.

[AtlantaLife&Health]

Go after the auto loan first. Then take the money you were spending on the auto loan and put it toward to HELOC balance each month.