Quote:
Originally Posted by Dadhawk
Yes, if you have the cash sitting around to pay off two loans and one of them has a higher interest rate, absolutely, no argument.
In the case where you have $1,000 to throw at your debt, I'm just saying my preference is to pay off what I can with the money rather than throwing it towards a higher interest loan and leaving the smaller debts in place.
Maybe it doesn't make math sense (never said it did, or at least didn't tend to) but math isn't always what matters to everyone. If math really mattered you probably wouldn't be in debt to begin with.
(Now starts the debate about using "someone else's money" when the rate is low enough)
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I see what I screwed up calculation wise and forgetting it changes month to month. Either way, the only way it benefits you is having to make one payment instead of two, which lowers the amount you have to pay until the first loan is paid off. That savings plus more gets stacked onto.the interest of the other loan though.