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how to spend my tax money???

ok i need some help on what bills i should pay off with my tax money. here are 2 options that i have chosen...
option 1 contains a 5000 dollar credit card with a 28.99% apr and 2 smaller credit cards with low interest. This option will give me 230 dollars extra in my pocket a month.
option 2 contains a loan that has 3000 dollars left to pay and it already has the interest added into it, my wedding ring, and 2 small credit cards with low interest. This option will give me an extra 310 dollars a month.
My dilema is even though option 2 will give me more money in my pocket, I will still be paying on a 5000 dollar credit card, where the 3000 dollar loan already has the interest added into it. HELP PLEASE!!!

Answer Question
 
Anonymous

Asked by Anonymous at 12:08 PM on Feb. 20, 2009 in Money & Work

Answers (6)
  • IMO Option 2
    Anonymous

    Answer by Anonymous at 12:16 PM on Feb. 20, 2009

  • Pay off the bills that will be payed in full with the income taxes money. Weather you have any money left from it or not. That way when you are paying bills at payday. You will have more $$$ to either pay on the other bills or just in your pocket.
    louise2

    Answer by louise2 at 12:19 PM on Feb. 20, 2009

  • I would say pay the 5000 dollars off. Since that has the highest interest rate!! You'll end up paying more on it if you keep letting the interest build up.
    xocyncyn

    Answer by xocyncyn at 12:21 PM on Feb. 20, 2009

  • pay off the highest % item first once you pay that off dont look at left over money as extra money for you to spend but as money for you to put on the next highest interest item and just keep working down from there with each item and in no time you wiill have the debt gone =) Good Luck
    ReneeLRS

    Answer by ReneeLRS at 12:29 PM on Feb. 20, 2009

  • I vote for option 1 because you are paying ridiculously high interest and you need to not only get rid of that debt, but cut that card up and never use it again. Then just use the extra money you are saving each month to pay off your Option 2 items.
    slw123

    Answer by slw123 at 12:50 PM on Feb. 20, 2009

  • I would do option 2, and then take that $300 extra per month and act like it's not there, have it go toward the next smallest bill, pay that off. Then take the extra money and put it toward the next smallest debt, pay that off. Keep doing that, while making the minimum payment on the $5000 debt, and finally when you have all of your smaller debts paid off, put all of your extra money to the $5000 debt. It will pay everything off quicker in the long run.
    AprilDJC

    Answer by AprilDJC at 4:50 PM on Feb. 20, 2009

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