|
DesertRat -> RE: Q on best debt to pay off (2/19/2008 9:23:03 AM)
|
My advice, which is worth every cent you've paid me for it:
Pay down that 9.9% card, but keep it. If that's a fixed rate, it's not all that terrible and if you're a long-term customer, you can later ask (firmly) that they give you a better rate from time to time. I say keep it because if you're anywhere near the edge and tightly living from check to check as I was, the card can be a lifesaver. Over the years mine have served as my "health insurance" and have also saved me from messing up my credit rating, which came in handy later.
No rush on that 5.9% balance, but I bet the other charges on that card would be at a much higher rate, right? If so, when that balance is done, close the card. Do it on the phone and don't be surprised if they offer you a much better deal to keep your business, unless you're a financial train wreck.
When you get the cards squared away, send a little extra on each mortgage payment with a statement (on the check or separately) saying to apply the extra money to the principal. If you can do that regularly, you could find yourself paying off your mortgage in 20 years instead of 30, so it's a little thing that makes a big difference. Don't rush on the mortgage, though. If interests shoot up like they did in the 70s, you could find yourself in the position of using somebody else's money very cheaply.
You might want to take a middle approach to the car insurance. Do you have med insurance? You might want to keep uninsured/underinsured coverage and eliminate your comprehensive coverage. Or see if you can get a really high deductible, like $1,000, and how much that will reduce your premium.
I would go for a higher deductible on the house/property insurance, too.
Good luck, no matter what.
Bob
|
|
|
|
