I have two car loans and would like to put money down towards one of them. Which one should I choose?
Written By: admin on May 20, 2009
2 Comments
I have two car loans with the same interest rate 5.65%. One loan is 10,281 and the other one is a new car loan at 22,525 that's with taxes included. I plot to place 6,000 down towards one of the loans. Do I place the money on the lower one to pay it off sooner or refinance the new one and decrease the taxes and interest paid over the life of the loan. It doesn't cost anything to refinance with my credit union, so there are no fees involved. Im having a hard time determining which way is more cost effective.
Related Financial Planning Posts
Tags: Car Loans, Car Loans, hard time, interest rate, money, new car loanTags: Car Loans, hard time, interest rate, money, new car loan
In my experience, I find it better to pay off whatever you can sooner. That way, once you pay it off, you can place what you save from paying on that one to paying more on the other.
[...] bookmarks tagged loans I have two car loans and want to place money d… saved by 5 others Samaele bookmarked on 05/19/09 | [...]