>Credit card is $4400. Minimum payment of $110
>car loan $6600. $200 a month
I believe the car interest is 4.9%? I got a good deal as a 22 year old. CC isn't that high of interest honestly, its like 2.5% or if the purchase APR is higher. It's the bank i have a checking account and my car loan with.
Let's say you have $1000 extra that you don't need on daily expenses. How would you spread it? Would you save any?
I'm starting to lean towards prioritizing the car because the interest adds up more and itll be sooner that i don't have car payments. What would you do?
>let's say you
I wouldn't have financed a car in the first place. If you can't afford it now, don't buy it. The only exception is real estate and even that's a shit idea half the time.
I'm from /fit/. I only know how to lift things and pull them.
Yes i know I'm retarded. I'm not denying that. At least I'm learning this at 25 and not later.
Epilepsy. I've lost jobs and my ability to drive more than once.
My previous used car costed more than 200 a months worth a year for repairs. It had to go. Also helped rack up my CC. But then a lot is retardation. I didn't start budgeting until recently and I'm doing awesome with money now after experiencing having no money whatsoever. That's what i get for growing up rich compared to most people. Hey at least I'm learning now and not at 45.
>baaaw financing a car is bad
that is FatWallet tier faggotry
Pay off the car. First, the car is tangible property that's easier to repossess than CC charges that probably came and went. Second, you can't run a car loan back up like you can a CC. Third, paid off car loan frees up more money per month to pay down CC versus the reverse.
>financing a car
>credit card debt
Just do like every other retard and blame it on the government for offering it to you in the first place. Hold no responsibility in life and continue living with your parents until Bernie Sanders is elected. He will take money from people who actually contribute to our economy to pay for your mistakes.
Op here. I never came here claiming to be intelligent. I came hete for help, which is what people who are bad at things do.
So, yeah I'm def going to start killing the car loan first and do 50% or so more on the minimum CC payment. Not having $200 a month to pay sounds like it would increase my quality of life in the near future. I'm done with CCs.
Thanks /biz/. This board is actually useful.
>First, the car is tangible property that's easier to repossess than CC charges that probably came and went.
If the threat of repossession is an actual consideration, he shouldn't have financed a god damn car.
>Second, you can't run a car loan back up like you can a CC.
This only matters if you're retarded. I guess OP admitted he is, so this stands.
>Third, paid off car loan frees up more money per month to pay down CC versus the reverse.
If your income is a set amount, it doesn't matter how much money paying off a debt "frees up". You still have the same overall income to put towards debts. Besides, OP's a dumbass and his credit card is absolutely not 2.5% interest, it's probably 25%. CC first, OP.
>willing to listen to advice
Not on my /biz/, motherfucker
Here's an Excel chart. I put 20% as your credit card rate because I don't believe that you have a 2.5% interest card. Again, you need to look at your agreement or look online or something to get that number.
I assumed (just for the sake of simplicity) you have $500 per month to put towards your debts. The minimum payments take out $310 of this, so you have $190 you can put to either your car or your CC.
On the left, I apply it to the car. The "Total Balance" column is really what you should focus on; a number in parenthesis is negative (meaning you still owe money). At the end of 26 months, assuming you put aside the remainder of the $500 to savings, you end up with $423.48.
On the right side, same story. The only difference is we apply the extra $190 to paying off your credit card. This results in your debts being paid off 2 months earlier, and if you continue saving that $500/month until 26 months pass, you end up with $1,443.47.
So if you pay the credit card off first, you end up with over $1,000 MORE in savings. If your credit card actually does have an APR of 2.5%, though, it's better to pay that off first.
>CC isn't that high of interest honestly, its like 2.5% or if the purchase APR is higher.
Unless you're talking about an introductory rate, I highly doubt it's that low.
6-7% is usually the bottom-tier lowest, and that's usually just for people with A+ credit.
I'd pay them off smallest to largest. Start with the CC. I paid off a little over $12,000 last year using the same method but the debts were smaller and more spread out.
It's behavioral not mathematical. Look at it like a diet. You need to see some weight dropping off to motivate you.