Submitted by PxleLemon t3_11tq9jr in personalfinance
So l have $10,845 worth of debt
Car loan - $5,544, Monthly payments- $350 Interest Rate- 5%
Credit Card- $5,301 Monthly payments- $25 minimum Interest Rate- 21%
Bank Account- $10k
Monthly income- $3,300
Obviously paying off the CC first would be more beneficial due to the interest rate. My plan is to pay $2,500 on each debts. I've been paying extra on my car so my next payment due date is June 30th.
Back to the plan. $2,500 on each. Stop my payments on the car, and pay about $1,000 a month on the CC. It'll be payed off by June. Then resume mr payments on my car. $1,400 a month Hopefully to have both paid off by September.
What do you guys think? Is there a different, better way to pay these debts off? Thank you guys!!
Update!
Thanks for the all the advice guys, I do apologize for the post not being so clear. The 5k CC debt was a recent purchase. Medical to be exact. The interest hasn’t even hit yet. However, I just paid the full CC amount and will continue to make my Car payments. Again! Thanks guys!!