Finance Question

So I figured I would see what you guys thought about a predicament I am in. Well its a nice predicament I think, but lets see what you think I should do.

My Grandmother passed away a couple of weeks ago and left some inheritance. Great lady, sad to see her go, but she was sick and it was time...

anyways, back to the topic at hand. Like many Americans I have debt. What would you do - below are my scenarios. I am married with a child and I cant be spending it on "splurge" items unfortunately.

10k To put somewhere

1. Wifes car 12000ish payoff. -- 310 mo.
2. My college Loan 6600 payoff, -- 153 mo.
3. Credit Card 2300 payoff -- varies monthly what I pay on it.
4. Blow the whole thing on the jeep (KIDDING)

So I mean I would like to pay off the CC and my loan freeing up some monthly money, but I also would love to pay off the wifes car faster. im a bit torn as to what to do. My initial thought is to pay off #2 and #3 and have 1k extra emergency money.

What you guys think?

What are the interest rates you're paying in the loans?

Id target the highest interest ones first which is probably the credit card.

Id probably pay off #2 and #3 and put the remaining $1000 towards the principle of the car loan. Then id pay an extra $150/month towards the car loan principle until its paid off.

The car loan is 0.9%
CC - not sure on Interest
College - not sure either - its pretty low I think.

Good advice Matt, I appreciate it

Rank it in order of interest rate from high to low. There's your list!

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Originally Posted by JustinS

Rank it in order of interest rate from high to low. There's your list!

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And I'd wager a guess that the interest rate on the credit card blows away the others, not even comparable.

well I suppose I have my answer - thanks guys. Good call on the interest rate, I would have never thought that. I couldn't get past monthly payment.

I work at a credit union and do this every day lol but yeah everyone gave the best answer. In most cases paying highest interest off first is your best bet. Student loan debt is good debt to have and you dont have much!! Lol

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Originally Posted by Core XK

I work at a credit union and do this every day lol but yeah everyone gave the best answer. In most cases paying highest interest off first is your best bet. Student loan debt is good debt to have and you dont have much!! Lol

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Ha, I dont have much left. But my wife just finished college 2 years ago... shes got a good amount :)

Yeah I know what you mean. My fiance is finishing up her masters with only 30k in total student loan debt. I wish I was as smart as her and got scholarships lol ill owe much more then that once im finished my masters.....

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College loan, credit card, and enough left over for a nice dinner!

ta da. :cool:

That's easy, pay off the student loan and credit card which will free up money each month. Use that extra money to pay more than the monthy payment on the car and before you know it the car will be paid off. Once that's paid off you'll have a bunch of money free each month for the jeep. Just my .02

Thanks for all the replies guys, you have made my decision easy!

And if you get in a pinch, the wife's car can be sold to take care of eliminating that debt.

Debt Reduction is something I know a lot about, paid off all my debts except my house in 1.5 years (and I had a lot of debt).

Here is my advice...

Pay off college loan - $6,600
Pay off credit cards - $2,300 (and don't use them again)
apply balance to wifes car - $1,100

THEN... take the money you were paying monthly for your college loans & credit card and apply it to the wife's car payment.

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Originally Posted by Knappster

Debt Reduction is something I know a lot about, paid off all my debts except my house in 1.5 years (and I had a lot of debt).

Here is my advice...

Pay off college loan - $6,600
Pay off credit cards - $2,300 (and don't use them again)
apply balance to wifes car - $1,100

THEN... take the money you were paying monthly for your college loans & credit card and apply it to the wife's car payment.

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^ exactly what I said. Minus forgetting about the $1100 left over that you can put on the car payment