Get rid of credit card debt or car payment first?

[nitrousninja]

I have $14K in credit card debt(I know, I know) at 6.9%

I owe $24K on my '03 Cobra at 6%. ( 40 payments left)

Should I get rid of the CC debt then dump the rest into the car note then refinance for a lower rate? Thats what I'm thinking.

Thanks

Matt

 

[Colt45]

Sell the car, pay off the CC, and drive a shitbox until you can afford a decent car

 

[Viper GTS]

1) Pay off the entire credit card balance
2) Set up an e-fund
3) Put any remainder towards the Cobra
4) Wait a couple months, then re-finance the Cobra (though you won't likely get better than you have)

Oh, and Colt45 has the true financially smart thing to do. I made the assumption that you wouldn't be able to part with the Cobra.



Viper GTS

 

[RossMAN]

Originally posted by: nitrousninja
Should I get rid of the CC debt then dump the rest into the car note then refinance for a lower rate? Thats what I'm thinking.

Yep.

 

[dullard]

Financially 6.9%>6% so pay off the CC first. Practically I might argue against that. The question comes down to why you owe 14K on a CC. Is that behavior finished? It not, you'll just go right back into CC debt (and thus paying off the car might be better). If the behavior is finished, then CC payment is the way to go.

 

[txxxx]

Originally posted by: Colt45
Sell the car, pay off the CC, and drive a shitbox until you can afford a decent car

(Y)