SECURED vs UNSECURED debt payoff
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SECURED vs UNSECURED debt payoff
| Wed, 04-27-2005 - 6:42pm |
We have a car loan that is about $10,000. It is a brand new car that we know we will be able to run into the ground so we are happy with the purchase. We also have unsecured debt that has ALOT higher balance. It is all in once place so it will take a long time to pay off.
Both loans have a great rate. I am considering paying off the car since I will be able to pay it off in less than a year. For cash flow it feels like the right thing. And we would still have the car as an asset.
I would appreciate anyones input here.
thanks!

If the interest rates are roughly the same, I say pay off the secured debt first.
All my best,
Danni
I completely agree with Danni on this one. Plus, it sounds like in your case paying off the secured debt first will result in freeing up a large amount of cash flow that can be used to pay down the other debt more quickly.
Go for it!
Heather