Published: Tuesday, March 5 2013 12:40 p.m. MST
Regarding the first question, what is there not to understand? Two small car
payments left, and most likely a very small interest rate; and some credit card
debt, at probably a much higher interest rate. Without knowing how much the
credit card debt is, I'd still most likely want to pay that off first, and
right away, especially with only two car payments left. Seems like a no-brainer
to me, unless I'm missing something crucial!However, better not
to get into debt in the first place!
Lots of variables not mentioned in the 1st question.How high is the
interest on each of these 3 debts?How high is the debt on each?Can
you pay one off quick and add that payment to eliminate another one quickly?
Or they could force their grandchildren to pay their debts!
Dave doesn't say a word about the difference in interest rates between the
credit cards and the car loans. It would make sense to pay the high interest
rate credit cards off first. The car interest is probably half (or less) than
the credit card debt.
If you want a good interest rate, you'll need a good credit score. Pay your
bills off every month on the cards. show that they are paid off by not using
them for a month, never keep a running tab on one card, get the bones points the
cards offer. Never get over whelmed. Dave is trying to get us to internalize the
idea only do what you can when you can. Plan for the worst but hope for the
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