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Personal Finances / Credit Cards and Consumer Debt
|Subject: Debt Payoff||Date: 10/24/2005 2:56 AM|
|Author: ApacheMech||Number: 213084 of 309605|
Greetings fellow Fools,
I am relatively new to this board and was recommended to post my question here instead of Fools and Their Money.
My question is: I have several loans, credit cards, etc. My plan is to pay off the smaller ones first and then with the cash from the payments I would have been paying, pay off the next debt and keep going. I have also thought about paying off the high interest ones first which are pretty big. Interest is at 12.5% for one unsecured consumer loan and the balance is around 17,500. The other one is a 2nd Mortgage which I used for debt consolidation. The current rate is at 12.5% and is an interest only loan (which I wasn't too happy with getting). The balance is $42,000. I really needed to consolidate debt at the time (emergency) and I really didn't care about the terms. Now I am going to fix the problem. Question is which one would be the smarter ones to pay off first: the smaller balanced ones or the higher interest ones? For complete information on my situation see the Fools and Their Money Board. Any help on the subject matter will be most appreciated. Thank you in advance.
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