What to pay off??

[tn94z]

TweetWell, I have some money built up in savings again and I'm wondering what my next move should be. I have a truck, car, and four wheeler that could be paid off with the money. I also have a big credit card. I don't have enough to pay the card off. What makes the best financial sense to do here? Should I get a 0% balance transfer card and start working on the big card or pay one of the others off to get them gone? I might actually have enough to pay off the truck and four wheeler together. What do you think?

[alluprbdy]

TweetWhat is the interest rates of the loans?

[tn94z]

TweetFour wheeler is around 5, truck and car are around 8, and the card is around 13. These are pretty accurate guess without knowing exactly...I have looked at them in a while

[alluprbdy]

TweetWell the card is the most important then, however a 0% balance transfer would change the priority saying that you will pay it off during the promo period. If so knock out the truck. If you need to keep the 4 wheeler payment bc 5% is pretty cheap money then pay off truck and pay down the card so you would be able to pay it off during your promo period.

[tn94z]

TweetThat is the way I was kind of leaning. I saw what happened to my credit score first hand when I closed my last two cards, so I don't think that getting the 0% card will hurt anything as long as it isn't maxed out when they do the transfer and stays that way. I think this will be the best route because the big credit card is something that I really want to get out of the way.

[alluprbdy]

Tweetya a credit card will have a neg effect once the balance is 35% of the limit. However it is not a huge effect, no reason not to go through with it.

[daved150]

Tweettransfer to 0 balance on the card, check the 4wheeler, i'm betting its higher than car and truck, but whack that fuker out and the truck!!! then attack the 0 intrest card before the term expires

[JsJs24]

TweetTypically I would suggest paying off the highest interest item first because it is costing you the most. However, if you can pay off the truck, car, and ATV with your money you would free up three payments that could allow you to pay off the card faster. I would pay those three off, transfer the balance of the card to a 0% interest one, and then pay as much as you can possibly afford on the card.

[tn94z]

TweetThe four wheeler is that low in interest. I went through my credit union and got a very low rate.

It sounds like I'm on the right path with my thinking. Thanks guys

[firstenrgy]

TweetIf you can get a zero% balance transfer then by all means do so. Even though financial sense would say to pay down on the next highest interest loan I would say to keep paying down on the credit card (unsecured debt). That will be the first debt that can and will rise interest wise as soon as credit tightens. It has already but you must have a good credit score. I had a 790 credit score when I purchased my TV and I got the 18 month zero% financing but my visa with a ZERO balance notified me that future purchases will be 18.99% as opposed to 9.99% because of my outstanding credit... (two cards raised my limit to $15,000 and $25,000 ans I never use them).
Just my 2 cents...

[daved150]

Tweet

If you can get a zero% balance transfer then by all means do so. Even though financial sense would say to pay down on the next highest interest loan I would say to keep paying down on the credit card (unsecured debt). That will be the first debt that can and will rise interest wise as soon as credit tightens. It has already but you must have a good credit score. I had a 790 credit score when I purchased my TV and I got the 18 month zero% financing but my visa with a ZERO balance notified me that future purchases will be 18.99% as opposed to 9.99% because of my outstanding credit... (two cards raised my limit to $15,000 and $25,000 ans I never use them).
Just my 2 cents...

aaaa...790....the good ol'days!! back when i could finance a lear jet if i wanted too!!! i guess that was the problem....too many people "wanted too", that could afford "too", lol.....now i cant finance a quater with 50cents down!!!

[tn94z]

TweetMan, I didn't get much of a credit limit on the 0% card, but I guess it's better than nothing.

[jamescb77]

Tweettransfer what you can and pay the rest down. Since you can't transfer the whole amount i woudl transfer what you could and pay the 4 wheeler and truck off. that will free up the money that you are normally paying on those two items and allow you to put those towards the higher interest card.

[tn94z]

TweetThat is probably what is going to happen. I am going to pay the truck off this week. And then see what I can do about the four wheeler. It will still work out. I mean, I didn't expect to get a HUGE limit on the initial opening anyway.

[tn94z]

TweetAfter doing some figuring and tossing some numbers around and speaking with a buddy that is pretty good with financials....I think I am going to continue to pay the car payments and four wheeler payment, and throw all my extra money at the credit card. My wife's car will be paid off in November. The truck will be at a spot by then that it can be paid off. So, I am thinking that by November, I can have the credit card paid off (with the help of this 0% interest card) and the truck paid off and that is when her car is scheduled to be paid off with payments. So, I am thinking (if my figuring is correct) that around November, the only thing left will be the four wheeler and the no interest card. Both of which can be paid off easily with income tax if we have to wait that long. This is all assuming that I don't get any OT at work. If I can get some OT at work, this process will be even faster.

So, it looks like I am still in good shape to get the debt gone this year...WooHoo!!