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I am going to get about 6 grands for taxes. I owe 4,900 for my car,I owe 3,900 for my son braces. Do I put half on the car and the other half on the braces. Or do I save the money until I get enough to pay both off. What would u do or I could pay the car off and put the rest in the bank in the bank and save the rest for the braces. After I pay the car and braces off I would be debt free,besides a mortgage.

 
officerdouglas

Asked by officerdouglas at 8:28 AM on Jan. 17, 2010 in Money & Work

Level 2 (10 Credits)
This question is closed.
Answers (5)
  • Pay off the car, put the rest of the money on the braces. Then after that, the money you use to pay to the car and to the braces put it all on the braces tell it is payed off.
    louise2

    Answer by louise2 at 9:04 AM on Jan. 17, 2010

  • pay off which ever has the highest interest rate. which is probably the car, but check first! your biggest issue with debt is the interest you pay. If you can avoid interest, you're better off!
    Anonymous

    Answer by Anonymous at 8:31 AM on Jan. 17, 2010

  • Thank u
    officerdouglas

    Answer by officerdouglas at 8:33 AM on Jan. 17, 2010

  • I agree and you would loose money if you saved up to pay it all off at once since you have to keep paying interest on the full amount.

    maxswolfsuit

    Answer by maxswolfsuit at 8:52 AM on Jan. 17, 2010

  • Do you have savings? If not, put $1000 in savings. You don't want to always be waiting for that tax return when something comes up. Personally, I'd pay off the car unless you have a ridiculously high rate on the braces. If you were to fall on hard times it would be much easier to work with whoever is financeing your sons braces and there would be no fear of losing your transportation.
    Of course there isn't anything wrong with saving up to pay it all off at once but I don't see a good reason TO do it. You are racking up charges every day and the less you owe , the less gets added on. You also have to be sure you won't dip into that money when the urge gets you.
    itsmesteph11

    Answer by itsmesteph11 at 9:04 AM on Jan. 17, 2010