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Contributor
heytherehitherehothere
Posts: 106
Registered: ‎07-15-2011
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pay off debt in which order?

I have an auto title loan from March at 3,000 balance.
Discover more balance of 3700.
Citi card balance of 1600.
I am getting a bonus at work of 3,000 dollars.
The Discover more is on a 0% until November of this year.
The Citi is on a 0% until December '13.
Should I pay the Discover balance of 3700 with my bonus? The remaining 700 is taken care of with my regular paycheck.
Or should I pay off the Citi 1600 with half of the 3,000 and move 1600 of the Discover to the Citi and pay the remaining balance of the Discover and just have the 1600 on the Citi and the 3,000 on the auto loan?
The other way I was thinking of paying all debts was to take my 3,000 bonus and pay off the auto loan.
Then get an unsecured loan for the 3700 and 1600 and pay those off and have the balance on just a new loan amount of 5300 which I can have paid off by March of 2013?
How should I best approach my debt payoffs, when the Discover card balance of 3700 is ending its 0% offer in two months?
Established Member
bobomb01
Posts: 40
Registered: ‎08-26-2012
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Re: pay off debt in which order?

What's the APR on the auto loan?

FICO: 754, (Walmart TU, 9/4/13)
Wallet: AMEX Gold, and cash.
Chase Freedom (5000), Capital One Venture1 (4750), CU Visa (5000), Discover More (5500), Walmart Discover (7500), Barclays Visa (2000)

Contributor
heytherehitherehothere
Posts: 106
Registered: ‎07-15-2011
0

Re: pay off debt in which order?

7% on the loan. I still have yet to hear if that's a good rate or not. Its from a local CU. If I pay the loan off I would just shop around for a 5300 loan to consolidate and pay off both cards. I have had 4 personal loans from this CU and have always paid them off within a year or less. I have never had a personal loan of more than 4k. I am really expecting this CU to give me any amount considering my payment history and time with them.
Established Member
bobomb01
Posts: 40
Registered: ‎08-26-2012
0

Re: pay off debt in which order?


heytherehitherehothere wrote:
7% on the loan. I still have yet to hear if that's a good rate or not. Its from a local CU. If I pay the loan off I would just shop around for a 5300 loan to consolidate and pay off both cards. I have had 4 personal loans from this CU and have always paid them off within a year or less. I have never had a personal loan of more than 4k. I am really expecting this CU to give me any amount considering my payment history and time with them.

I work for a CU and our best rate on an auto loan is 2.75%... Our rate for 599 credit and below is 7.5%... I would consider shopping around and refinancing if your score is good enough.

 

Otherwise I would pay the Discover off first since you're about to start paying interest on it.

FICO: 754, (Walmart TU, 9/4/13)
Wallet: AMEX Gold, and cash.
Chase Freedom (5000), Capital One Venture1 (4750), CU Visa (5000), Discover More (5500), Walmart Discover (7500), Barclays Visa (2000)

Contributor
heytherehitherehothere
Posts: 106
Registered: ‎07-15-2011
0

Re: pay off debt in which order?

Hmm. This auto loan IS a refi after my original loan was paid. I went in to get another personal loan like I did every year and the loan officer had seen my stellar payment history with my other three loans when I asked for 3500. He said definitely without pulling my credit (he eventually did) and asked me if I wanted it secured or unsecured. I asked what the difference was because I had never been asked that when I came in for the other unsecured loans. He told me the secured loan would have a better APR if I put the free and clear car on it as collateral. He said I can do it either way. I told him I would try the secured loan with the better APR since all my other personal loans were unsecured with APRs around 11 or 12. I posted here a while ago trying to figure out if I was given a choice anyway, would I be able to go into the CU and have the loan switched to an unsecured? Maybe you can give me some insight into that. Not that it's going to matter if I pay the loan anyway, but I feel I should be able to switch the loan from secured to unsecured. I am considering selling my car to my brother who needs transportation to college and wasn't sure if I could sell it if it's collateral on a loan. Thanks for the responses!
Contributor
heytherehitherehothere
Posts: 106
Registered: ‎07-15-2011
0

Re: pay off debt in which order?

All my scores are hovering between 690 and 710.
Established Member
bobomb01
Posts: 40
Registered: ‎08-26-2012
0

Re: pay off debt in which order?

[ Edited ]

heytherehitherehothere wrote:
Hmm. This auto loan IS a refi after my original loan was paid. I went in to get another personal loan like I did every year and the loan officer had seen my stellar payment history with my other three loans when I asked for 3500. He said definitely without pulling my credit (he eventually did) and asked me if I wanted it secured or unsecured. I asked what the difference was because I had never been asked that when I came in for the other unsecured loans. He told me the secured loan would have a better APR if I put the free and clear car on it as collateral. He said I can do it either way. I told him I would try the secured loan with the better APR since all my other personal loans were unsecured with APRs around 11 or 12. I posted here a while ago trying to figure out if I was given a choice anyway, would I be able to go into the CU and have the loan switched to an unsecured? Maybe you can give me some insight into that. Not that it's going to matter if I pay the loan anyway, but I feel I should be able to switch the loan from secured to unsecured. I am considering selling my car to my brother who needs transportation to college and wasn't sure if I could sell it if it's collateral on a loan. Thanks for the responses!

You would need to get the lein released from the car before you would be able to sell it. I don't think your brother would be able to register it otherwise.

 

If you don't mind saying, what is your credit score?

 

EDIT:

 

Just saw you post your scores...

 

You should definitely qualify for a better rate on an auto loan. If you're going to keep the car you should refinance the loan as an auto loan. Shop around, I bet you will find much better rates.

 

FICO: 754, (Walmart TU, 9/4/13)
Wallet: AMEX Gold, and cash.
Chase Freedom (5000), Capital One Venture1 (4750), CU Visa (5000), Discover More (5500), Walmart Discover (7500), Barclays Visa (2000)

Contributor
heytherehitherehothere
Posts: 106
Registered: ‎07-15-2011
0

Re: pay off debt in which order?

For the past year all scores have been around 690 and 710. So all I have to do is go in and ask for the car to be taken off as collateral? I would also be telling them about paying it off. Would I just say "take the car off the loan and switch it to unsecured?"...or "remove the lien from the car so I can sell it and I will pay off the loan once the car is no longer collateral."
I just want the car off before I pay off the loan. If I had the choice to have a security free loan or a secured loan, I should just be able to go there and have them switch the wording and APR of the loan to unsecured and then pay off the balance. Its a 36-month loan that I will have paid off in 6 months.
Contributor
heytherehitherehothere
Posts: 106
Registered: ‎07-15-2011
0

Re: pay off debt in which order?

Bobomb....I don't care about the APR at all. I just want to go to the CU and have them remove the car as collateral, switch whatever they have to with the loan verbiage and APR. I would be paying off the loan the next day and then I would go get a completely separate and new loan elsewhere if I have to to get a better APR (which doesn't make sense much to me) so I can get the new personal loan for 5300, cash the check or have whatever bank I get the new loan from to pay my two cards. That's all I want to do.
Contributor
heytherehitherehothere
Posts: 106
Registered: ‎07-15-2011
0

Re: pay off debt in which order?

The new loan will have nothing to do with my car because once the CU switches this secured collateral loan that has a 3k balance over to an unsecured...
I will have paid off the 3k balance and sold my car.
I am selling the car to my brother.
I might not even have to get another loan to pay off my two cards if he can buy it in total. He might have to make payments...in which case I will get a personal loan and pay my cards off and just pay the loan off with his payments.

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