10k bonus, what would you do with it?

[mrblunt]

Pay off a car loan at six percent interest or pay off higher interest credit card debt? The car loan would free up a 450 dollar a month payment. The credit card minimum payments are around 250 a month. I'm arguing that the credit card debt is much smarter to pay off but I'm not a financial guru and want to get the opinons of folks who may be. Thx.

[dover]

I would pay off what has more interest to be honest. Interest is what feeds credit card companies. Plus a car loan looks good on your credit report (if paid on time).

[Sully]

Pay off high interest stuff first.

[russian rocket]

can you still use the credit card? if you do, do you have good self restraint? if you dont then i would pay the car off first since you cant increase that balance...

[mrs.cos]

High interst first, always.

[DaddyBuiltRacing]

Where do you work that gives 10k dollar bonuses?

[evan9381]

Where do you work that gives 10k dollar bonuses?

 

Doing collections, last july a guy i worked with did a 14,400 bonus plus a 37" flat screen tv, surround sound, and a blu ray player...i did a 7400 in feb of this year...its not hard to do, you just gotta be in the right business

[Orion]

Credit card. Pay it off, and then burn it.

[El Karacho1647545492]

credit card without a doubt. don't think of it in terms of what your monthly payment is (short term costs) think about the long term. You know exactly how long that car will take to be paid off, however the credit card can literally just drain your finances for ever and ever and ever.

[Tractor]

Tough call, if your goal is to pay off all debt I'd almost pay off the car and put money towards CC until its paid which will be much faster now.

 

Can do it in reverse order if you want doesn't really matter as long as you can stick to your goal. I'm just thinking adding 450 to a CC payment is much better than adding 250 to a car payment.

 

Besides the next step after paying off the car for me would be getting another CC with 0 percent balance transfers and paying off the old card with that. Then put your $700 per month total (old car payment + cc payment) towards the new 0 percent CC and your set.

[evan9381]

Tough call, if your goal is to pay off all debt I'd almost pay off the car and put money towards CC until its paid which will be much faster now.

 

Can do it in reverse order if you want doesn't really matter as long as you can stick to your goal. I'm just thinking adding 450 to a CC payment is much better than adding 250 to a car payment.

 

Besides the next step after paying off the car for me would be getting another CC with 0 percent balance transfers and paying off the old card with that. Then put your $700 per month total (old car payment + cc payment) towards the new 0 percent CC and your set.

 

Always pay off the higher interest first.

[KillJoy]

Highest Interest First.

 

:thumbup:

 

KillJoy

 

Edit: If the Bonus would COMPLETELY remove one of the two, "I" would probably do that above the recommended.

[Sully]

Tell you what, just give it to me so that I can pay off my home equity loan and we'll call it even.

[wnaplay1647545503]

Without knowing how much is on the CC, I would pay off the car and then use that money to pay off the CC.

[mrs.cos]

if his optiones are either One or the Other, im gonna assume they are pretty close to being the same

[Nitrousbird]

Credit Card.

 

If you ever had to fully get out of debt, you could always sell the car to pay off the loan. You can't sell the CC to get out of that debt.

[Bobby Lee]

A trip to Vegas. A week of Hookers and Blow will make memories for a lifetime.

[verse]

Two chicks at the same time.

[TTQ B4U]

flip the CC debt to a zero percent card and invest part of the money in a Roth or simliar paying yourself first. Then use the portion left to pay the monthly on your new zero percent card until it's gone. not sure how much you owe, but that's what I would do. Bottom line is to pay off the highest interest debt first. chances are the car is relatviely low by comparison. besides, a car is a depreciating item. why put money into that if it's just dropping in value.

[Otis Nice]

Credit card. Pay it off, and then burn it.

 

Win.

 

Two chicks at the same time.

 

Win.

[Mowgli1647545497]

Doing collections

 

irony

[Farkas]

Two chicks at the same time.

 

This made my night, thanks jon

[hpfiend]

first I would refinance that car loan if you can- 6% is ridiculous in this economy- penfed is offering 2.9%...

 

then I would pay down the high interest rate credit card debt- roth or not as things stand now- I don't see you making anywhere near the returns you would need to justify not paying down any sort of consumer debt...

[evan9381]

a lot of you talk about going to a 0% card and refinancing the car loan, but i dont think some of you are considering the current credit card market...i used to get 0% offers out the ass. 2-4 a week easy. i may have seen one a month, and its always from amex, which the one they try to pitch me has an annual fee.

 

this is assuming the OP has outstanding credit, and will be able to find a company to give him a 0%...easier said than done.

 

the other thing to think of, is some, if not most banks/credit unions wont deal with cars over a certain age. i think with mine, its like 6 years old.

 

i guess what was said above is true...more details about balances, etc, would help.

[Nitrousbird]

0% cards are out there, but here are the problems in today's market:

 

- The terms are much shorter than they used to be, most being only 6 months.

- Balance transfer fees of 3-5%

 

Several years ago I got a 0% for 18 months with no transfer fee...that's a no brainer to get that card. Those not longer exisist.