@phenox2497 wrote:
Hi Everyone! I recently landed the best paying job i've ever had, a contract that is "supposed" to last for 5 years. Being previously unemployed for 6 months I immediatly set off to pay off my credit cards. So far i've payed my debt down from $4200 to just under $500. It will be paid off by the first week of februrary. My next debt is the 2 vehicles I own. I know that conventional wisdom says to pay off the vehicle with the highest interest rate. I have a 2015 Charger 392 at 3% interest with $4700 left on a $10000 note it's a 24 month loan the payment is about $440. The other is a 2008 Trailblazer I bought after moving up here to be able to drive in the snow. It's at 8% interest and I owe $7400 of $8000 on a 36 Month loan. The Payment is about $240
So as I said conventional wisdom is to pay the higher interest vehicle. Is there anything wrong with taking out the charger first to free up $440 a Month then going after the Trailblazer? My dad says to work on my emergency fund first but I've just been trying to pay down debt as aggressively as possible. Other than that really the only other assets that are in my name are about $2000 in a stock market account.
I personally don't see any issue with tackling the Charger one first, then putting that payment towards the Trailblazer once it is paid off. Yes, you will probably pay a little more in interest, but probably not too much. I would listem to your dad and build up a reserve fund of at least 1-2 thousand. This shouldn't take too long ot build up and will help you if you need to float a repair or aynthing thing for a vehicle or something. But then after that, pour all your extra money into paying off your debts.
