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Reply to "Help me decide what to pay first?"
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[quote=Anonymous]OP, what are the rates on the first two that you listed? So if I understand you correctly, you do NOT currently have anything in savings? But will be contributing $800/month from here on out? Here is what I would do (just me), loosely based on DR 1. Save up $1k or so in savings. It looks like you could do this in 1 month. 2. Then take everything you HAD been contributing to savings and throw it at either: -the debt with the smallest balance (woo hoo, it feels good to eliminate something) -the debt with the highest rate (saving you the most in the long term) while continuing to make minimum payments on everything, of course. Personally - w/o knowing all the details - I would do the personal loan first, then tackle the cc. 3. once those two lines are gone, continue to make minimum payments on car, student loan, and mortgage, while saving up 3-6 mos of living expenses in savings. PUt this somewhere "safe" and not immediately accessible. 4. Once that's done, start a savings acct... maybe 5k. to cover car repair, appliance replacement, new couch, vacation, whatever you're comfortable with and would like to never, ever put on a cc again. 5. then student loan - car - mortgage. Some people would probably say student loan and car loan before #4.[/quote]
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