Is it good to pay off my student loan?

[LuckyTaxi]

I have a perkins loan with a balance of $485. Interest rate is 5% but instead of making a one lump sum payment, I could really use the money to pay down some credit cards. My other student loan is around $19k!!!!

Also, I have roughly $5k left on my car payment. Is it good to pay that off? Interest rate for that is 6.25%

 

[AU Tiger]

In most cases it is best to put your money towards the bill with the highest interest. Exceptions to that rule for me are cases when I can pay off a smaller bill and eliminate it from my monthly expenses.

 

[djheater]

Originally posted by: AU Tiger
In most cases it is best to put your money towards the bill with the highest interest. Exceptions to that rule for me are cases when I can pay off a smaller bill and eliminate it from my monthly expenses.

Agreed.

 

[Evadman]

Originally posted by: AU Tiger
In most cases it is best to put your money towards the bill with the highest interest. Exceptions to that rule for me are cases when I can pay off a smaller bill and eliminate it from my monthly expenses.

 

[eigen]

HAH $485. I thought we were talking about student loans not some little kids piggybank.
You dont even want to step foot in my world of debt.

 

[aphex]

My student loans are at around 25k and climbing 😀

 

[DT4K]

Originally posted by: eigen
HAH $485. I thought we were talking about student loans not some little kids piggybank.
You dont even want to step foot in my world of debt.

I bet I've got you beat in the student loan department.