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Discussion Starter #1
Okay. So I have a personal loan amount of 6500 and a car loan of 10000. The car isn't worth anything but maybe 5k. I have just enough in savings to fully pay off the car or the personal loan. I know snowball and pay off the smaller loan but if I pay off the car now it'll take less time to pay off the personal loan. But paying off the personal loan first and taking more time to pay off the car and the cars worth continues to depreciate. This would be in hopes to having the car paid off and loan paid off asap so I could use the cars Worth towards a better car and actually have some positive equity and reliability. Any help is welcome.
 

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5k is a pretty good valuation for a used, functioning car. Don't write it off just yet. It should not depreciate too quickly.

But for the moment, forget about the car. How much is left on the car loan and how much interest are you paying? How much is the personal loan, and what is the interest? Pay off the loan with the higher interest, the one that will cost you the most in the long run.
 

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Discussion Starter #3
Car loan is has 9700 left the 3.24 interest rate. The personal loan is 6500 with an interest rate of 11.99. I appreciate the advice !
 

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yep...the lower personal loan with that SUPER HIGH interest rate should go first. The car loan is costing you less in interest. If you'd rather pay the car loan off first, it doesn't really matter. Just pay one and start on the other. Doing the pay offs is more important than the order you do them. You can even flip a coin.
 

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While I agree with Maggie, I personally wouldn't wipe out my savings to pay off a loan unless I had an emergency fund.
 

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I agree with the personal loan AND have a emergency fund...So maybe pay off most of the personal loan witholding $1000-$2000 in emergency. After a year, once you collect some more $, pay the rest of the personal loan off as long as you still have $1000 for emergencies.
 
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