Should I pay down my credit card or auto loan first?

advertisement
first credit card

Believe it or not the interest on my auto loan is higher than my credit card. (~12% for auto loan compared to ~10% on credit card). I owe approximately $5000 on each. Common sense would say to pay on the higher interest first. However, are there other factors I should consider such as how often the interest is compounded?
Both interest rates are fixed. Sorry forgot to add that.
« Circuit City Credit Card?
What is the best business credit card to apply for? »

Thursday, December 4th, 2008 at 3:23 pm. Posted in First Credit Card. Tags: , , , , . You can follow this web articles through the RSS 2.0 feed.

Related Post: 20% down on house or pay off low interest credit card and/or car?, Por cuántos dólares le hacen un voucher a la Credit Card cuando se alquila un auto en USA. El pago es?, Does a 4.9% credit card loan beat a 9.2% home equity loan in terms of money savings and tax benefits?, How to Lower your Credit Card Payments, What is the best way to pay off credit card debt?, How can I settle my credit card/personal loan debt?, How do you obtain revolving credit when you want to be careful with your own?, lenders or loan officers- please help?, Denied circuit city credit card?, How much debt do you have? I have about $50,000, including a car loan and consumer. (not including mortgage)?,

2 Responses to “Should I pay down my credit card or auto loan first?”

  1. Well I’ll assume your car loan is fixed, your credit card is probably variable. The credit card rate is lower right now, it may not be later. Personally I’d be paying down the credit card debt first.

  2. beckoningsubstitutes on December 7th, 2008 at 8:16 am

    Take one of the 100 credit card offers that offer 0% for a year. Transfer the debt there. Make the same payments that you are now.

    This is very important…. Throw the 0% card away.

    Do Not Use It!!!

    If you make a purchase w/ the new card it will start drawing interest. All the payments you make will go towards paying off the 0% balance and the interest on the new purchases will just build and build and you’ll be in a worse spot.

Leave a Reply