Debt Payoff

[Harvey26]

Getting a healthy inhertiance check which i initially thought would be larger but its looking to be right around 32K. Here are debts:

Car Loan: 25.9k left (1.74%)

Home Improvment Loan: 15.3k (5.99%)

CC: 7000 (0% for 12 months) 

My thought is to pay off the home improvement loan and the credit card... or I could do the credit card and my car. Thoughts? 

[FireMedic1]

Payoff all you can on the whats charging you interest now. Thats money you'll never see again. But make the banks richer.

[NoMoreDebt]

I would knock out the car loan, it is a depreciating asset that's still costing you interest albeit very low. Then put the remaining $6k or so toward the home loan.

[GZG]

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@Harvey26 wrote:

Getting a healthy inhertiance check which i initially thought would be larger but its looking to be right around 32K. Here are debts:

Car Loan: 25.9k left (1.74%)

Home Improvment Loan: 15.3k (5.99%)

CC: 7000 (0% for 12 months) 

My thought is to pay off the home improvement loan and the credit card... or I could do the credit card and my car. Thoughts? 

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pay off the home improvment loan, and put the rest into savings and be ready to pay off the CC at the end of the 12 months (or now if you prefer, particualrly if you wanted to apply for more credit in the near future), you save more money keeping the money in savings than paying off the car.

[Citylights18]

You probably can't go wrong paying off any of the three as the amounts are all in the same range.

An open car loan can help your credit, particularly if you only payoff a portion of it. The loan is also at a good rate.

You've just done a BT for 12 months? I would probably use the APR period and flip it to another 0% APR card.

I'd say bop out the home improvement loan and use the remainder to pay down the car loan which will shave months off of it.

[ForwardLooking]

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@Harvey26 wrote:

Getting a healthy inhertiance check which i initially thought would be larger but its looking to be right around 32K. Here are debts:

Car Loan: 25.9k left (1.74%)

Home Improvment Loan: 15.3k (5.99%)

CC: 7000 (0% for 12 months) 

My thought is to pay off the home improvement loan and the credit card... or I could do the credit card and my car. Thoughts? 

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What are your long term goals and how disciplined are you with money?  Your weighted average interest rate with the 3 debts listed is about 2.8%.  Money market accounts are paying about 5% right now (I am getting 4.99% in my Fidelity brokerage account for cash deposited).  You could park your money there for 12 months and then pay off your 0% CC once the intro period expires and be money ahead assuming you have enough income to cover your payments without using your inheritance.

However, if you are not good with money, or if the debt is anoying you and making you angry, then by all means pay it off starting with the Home Improvement loan followed by the credit card.  Save the last 10k and start an emergency fund if you don't have one already.

I wish you the best.

[SouthJamaica]

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@Harvey26 wrote:

Getting a healthy inhertiance check which i initially thought would be larger but its looking to be right around 32K. Here are debts:

Car Loan: 25.9k left (1.74%)

Home Improvment Loan: 15.3k (5.99%)

CC: 7000 (0% for 12 months) 

My thought is to pay off the home improvement loan and the credit card... or I could do the credit card and my car. Thoughts? 

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If I were you I'd pay off the credit cards and the home improvement loan, and apply the remaining $9700 to the car loan.

[pizzadude]

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@Harvey26 wrote:

Getting a healthy inhertiance check which i initially thought would be larger but its looking to be right around 32K. Here are debts:

Car Loan: 25.9k left (1.74%)

Home Improvment Loan: 15.3k (5.99%)

CC: 7000 (0% for 12 months) 

My thought is to pay off the home improvement loan and the credit card... or I could do the credit card and my car. Thoughts? 

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For the car loan, I'd look at the amoritization schedule and identify how much interest you have left to pay over the life of the loan.  The interest rate is low but I'm guessing you'd save a few hundred dollars at least if you paid it off.

What happens after the 12 month / 0% promo ends on your CC ? I'm guessing your interest rate would be back up to at least 20% which will have you paying > $100 / month in interest.   The home improvement loan, if this is a revolving account you're probaly paying at least $70 / month in interest, so it might also be a candidate to pay down.

[FlaDude]

What's your utilization % on the credit card? If your score is a consideration, making a payment that would help. How confident are you that you can pay the CC before interest starts if you don't pay it now?

[ghgirll40]

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@Harvey26 wrote:

Getting a healthy inhertiance check which i initially thought would be larger but its looking to be right around 32K. Here are debts:

Car Loan: 25.9k left (1.74%)

Home Improvment Loan: 15.3k (5.99%)

CC: 7000 (0% for 12 months) 

My thought is to pay off the home improvement loan and the credit card... or I could do the credit card and my car. Thoughts? 

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I would save half and pay off so pay off the home improvement loan and put the rest in savings for a rainy day.