27 year old with $20,000 from will. But a lot of debt. Help

[Jluke]

Can someone explain why to pay the car off first, then go and trade it in? I must be missing something

[tripods68]

Can someone explain why to pay the car off first, then go and trade it in? I must be missing something

When he sell his car, he can buy a beater car worth $3K. The rest of that money will go towards paying down student loan or keep it towards EF.

[pflyers85]

When he sell his car, he can buy a beater car worth $3K. The rest of that money will go towards paying down student loan or keep it towards EF.

I think he understands that. I'm pretty sure his point was why use some of the $20,000 to pay off the car. He can sell the car right now and use some of the money from the sale to satisfy the remainder of the loan and with whatever money is left he can buy a beater.