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Jul 1, 2015
10:52:24am
If your intent is to pay off one debt then apply that pmt to the next debt etc.
it is usually recommended to pay off the one with the shortest term remaining. The thought being that regardless of interest rates, as you eliminate debts you add the monthly payment you were paying towards that debt to the "extra" you have in your budget that you are applying to pay down debt. So after you pay off car loan for example, you have $100/month (the extra you were applying) + $285 (the car payment you are making every month) that you can start to apply to the next debt (the remaining one with the shortest term).

I am sure there are circumstance where this won't make sense but if there are a number of shorter term debts like car loans, credit cards and student loans this approach can really work.
This message has been modified
Originally posted on Jul 1, 2015 at 10:52:24am
Message modified by fulano on Jul 1, 2015 at 10:53:24am
fulano
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fulano
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