Pay or not to Pay?

iVillage Member
Registered: 09-05-2011
Pay or not to Pay?
Mon, 12-12-2011 - 10:09am

Hi everyone.

My DH and I are working on our plans for the new year when it comes to paying down our debt and starting a new budget. I was wondering if anyone can give me some advice on what to pay

iVillage Member
Registered: 01-20-2010
Wed, 12-14-2011 - 9:40am

when you get right down to it,

iVillage Member
Registered: 03-27-2005
Tue, 12-13-2011 - 8:10pm

Personally I like Dave Ramsey's approach.

iVillage Member
Registered: 05-08-2006
Mon, 12-12-2011 - 4:53pm

I would also look at what the cost would be to transfer balances from high interest cards to lower interest cards, and what that would do to your minimum payments.

Community Leader
Registered: 08-25-2006
Mon, 12-12-2011 - 1:56pm

If all of your bills are paid on time, and no one is hounding you, then Maries' suggestions are sound and reasonable.

iVillage Member
Registered: 12-10-2009
Mon, 12-12-2011 - 11:09am

I would pay the most crucial ones first and then go for the small ones since that is what seems to be what you are inclined to do at this point. It probably will be a lot easier to continue once you get your tax refund back to send towards CC because you will most likely make a lot of progress with that.

I personanly like to do small loans fast but I would really like to be mortgage free so I am going to put more towards that again eventhough I am not 100% done with my small loans.

I think it helps if you can see it as a game also.


student loan paid off 2010

Bathroom remodel loan paid off 2013

Pending Car loan to be paid by the end of 2014!!!!!


iVillage Member
Registered: 12-31-2010
Mon, 12-12-2011 - 10:50am

Like most here, we have read book after book about finances, but what really worked for me (and for a lot of people I work with through our church) is to pay the smallest bills first.

iVillage Member
Registered: 04-10-2003
Mon, 12-12-2011 - 10:24am
This is really a personal preference. I think you need to do what keeps you motivated. From a pure dollars perspective, the smartest thing to do is pay off the highest interest rate first. From a humanistic and behavioural point of view, do whatever the heck it is that will keep you motivated. Being dollar smart doesn't work if you get so frustrated that you give up and start spending again!
I personally am doing a combination. I tackled all my smaller debts first (CC and small student loan). I am not left with a car loan and a BIG student loan. I am attacking the big loan (even thought the interest in a deduction) because a) it's easier (I can send internet payments whenever I want versus having to call the bank and tell them to withdraw x amount an apply it to my loan) and b) I can see my daily interest charge in that loan, so the motivation is to see it go down, even if it's a few cents at a time!
Good luck with whatever you decide! You can do it!

Bex -