Should I be paying off my credit card or truck?

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joshua72
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Should I be paying off my credit card or truck?

Postby joshua72 » Tue Sep 09, 2008 10:09 pm

My wife and I are working on paying off debt but we disagree about what should be paid first.

I have a truck that was financed for 72 months at $610 a month and a 7% interest. I have around thirteen more payments to go on it. On my credit card I have a balance of $9,000 that was transferred over and is 0% until August 09 and after that it will also be 7% interest.

I think I should pay off my truck first and then put that amount to my card after. The misses on the other hand wants me to pay my credit card first and pay on the truck later on.

How would you advise is the best way to handle this. I will show her the responses on here.

-Joshua


magyar1045
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Postby magyar1045 » Wed Sep 10, 2008 8:41 am

Read the fine print on your car loan regarding pre-payment penalties.

Rajeta
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Postby Rajeta » Wed Sep 10, 2008 7:25 pm

Add up all remaining payments of the truck and compare the total to the amount you would have to pay now to pay it off in full. If you have to pay all the future interest anyway even if you pay it off now, it's better to pay off the credit card before the 0 apr period ends and interest can start accumulating there.

010101
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Postby 010101 » Wed Sep 10, 2008 7:40 pm

this is a stupid question why would you pay something off with 0% interest before something with 7% interest.

tell your wife to get a brain.

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Cucumber
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Postby Cucumber » Thu Sep 11, 2008 2:08 am

So your wife likes throwing away money? :confused:
OBAMA
Stop talking crap about him!

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Mogul of Pineapples
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Postby Mogul of Pineapples » Fri Sep 12, 2008 4:22 am

Well the disadvantages of the credit card is that you could lose out on your 0% rate by paying late on that card or possibly another card. That's the only negative I can think of as to why you wouldn't want to carry it.

Are you someone who always pays on time, all the time, with all of your bills? If so then carry the balance. If you're someone who pays late on occasion I would be afraid of losing the promo rate and wouldn't want to do it unless I had the cash in the bank to pay off the $7,000 if the rate was suddenly jacked up.

What issuer is your card? The reason I ask is some are less likely than others to change rates on you usually.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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fffresh
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Postby fffresh » Sat Sep 13, 2008 10:54 pm

Pay on the truck and hold off on the card. If they change the terms of the card and the interest rate goes up then either transfer the balance again or pay it off. That's what I would do anyways.

robert.loehmann
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The masses are even dumber than I thought...

Postby robert.loehmann » Mon Sep 15, 2008 4:37 pm

Joshua just answer this one question, are you a total moron? The fact that you or your wife would even ask such a thing shows you are not the brightest bulbs in the chandelier. Why on earth would you choose to pay interest over no interest?

The school year has just begun. Consider re-enrolling in high school or maybe even grade school.

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fffresh
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Postby fffresh » Mon Sep 15, 2008 8:26 pm

Hey now we should all play nice in the sandbox here.

joshua72
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Postby joshua72 » Mon Oct 06, 2008 2:55 pm

Hi guys,

Thanks for all of your advice. My wife did end up letting me pay the truck first and the 0% credit card balance after.

I'm worried now if I will be able to pay off that card when the 0% promotional offer runs out. We have seen the value of our IRA cut in half over the past 6 weeks. I was planning on withdrawing funds from there to pay it off later but that doesn't look like it will be possible anymore.

Again thanks for your advice!

-Joshua



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