Credit Card Debt Freeeeeeeeeee!!!!!!!

iVillage Member
Registered: 09-01-2008
Credit Card Debt Freeeeeeeeeee!!!!!!!
6
Sat, 03-28-2009 - 4:20pm

I just wrote a check for $2,800 to finish off Chase. I have no more credit card debt. I am soooooooooo happy. Now I need to decide which one to knock out next.......Help.....I have 3 loans
Mortgage with a balance of $29,000 at 6%
HELOC with a balance of $36,000 currently at 3.25% but variable
Personal loan of $24,000 at 6.99%

So what do you guys think? I've worked hard at paying this off and now these last three are really huge. Which should I start hitting first? This is a toughie.......I think it should be the personal loan because of the interest rate but I like the feeling of security that a paid-for house would bring.

iVillage Member
Registered: 11-17-2007
Sat, 03-28-2009 - 4:32pm

Wonderful job I wish I could say the same thing


I would do the personal It is higher interest and it is not tax deductable. AT least a 1/4 of the interest you are paying on the house loans you get back in a tax break So at the loan rates you have that means you are really paying a couple of points of interest less on them.


Mary Ann


iVillage Member
Registered: 12-29-2008
Sat, 03-28-2009 - 5:19pm

Nice job!

iVillage Member
Registered: 04-12-2007
Sat, 03-28-2009 - 6:05pm

Congratulations!!!!


I personally would go for the personal loan just because it is unsecured debt.


Robyn


iVillage Member
Registered: 11-14-2008
Sat, 03-28-2009 - 7:03pm

Congrats on getting rid of the cc debt!! I would do the personal loan next due to the interest rate and it being unsecured debt. Hopefully you do not get penalized for putting extra on it. Check with your bank. Good luck on the next phase of your debt reduction!



iVillage Member
Registered: 09-01-2008
Sat, 03-28-2009 - 9:54pm
Thanks everyone for the responses. I knew that the personal loan is what I should do......I guess I was just hoping that someone could help me justify putting it on the HELOC or mortgage. With all of the foreclosures going on, it scares me to death to think of losing our home. We are certainly not in jeopardy of that but I guess it just makes me think that I would love to go ahead and pay off the house.
iVillage Member
Registered: 04-10-2003
Sun, 03-29-2009 - 8:49am

This may not make sense because I am not overly familiar with tax laws in the US, but I believe the interest you pay on the mortgage (maybe HELOC?) is tax deductible. So what about paying down the personal loan (because its high interest) and then using the tax return money to pay down the other two every year (again, I could be wrong and this will make no sense, lol, so if thats the case, forgive me!)


If it was me, I would go with the line of credit. Having said that, you do what makes YOU feel comfortable. This is YOUR life and regardless of which way you do it, you are still paying down debt and thats a pretty darn good thing!


Bex -


"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."


Bex -