Comments on: What Debts Should You Pay Off First When You Get Extra Money?

By: Carnival of Debt Reduction: It's A Marathon, Not A Sprint Edition! | Man Vs. Debt

Fri, 11 Dec 2009 12:28:09 +0000

[...] presents What Debts Should You Pay Off First When You Get Extra Money? posted at Prime Time Money. This is a great overview of the important things to consider when [...]

By: Emily

Emily — Sun, 06 Dec 2009 17:50:15 +0000

I have a work bonus and have been using the snowball effect to pay off debt. However with this bonus I could pay off the rest of my credit cards and with the left over money pay off a low interest secured loan. Or i can take all the money and pay off just 1 high interest personal loan.But still have the credit card debt. either way would allow me to put about the same amount that extra montly savings towards another bill. i just want to make sure i do the right think. I am thinking the rest of the credit cards and payoff that 1 low intrest credit line.

By: Cyndi

Cyndi — Thu, 10 Sep 2009 04:25:34 +0000

Thanks for your help. I am pretty sure i will be paying the credit card off.

By: PT

PT — Wed, 09 Sep 2009 06:02:20 +0000

@Cyndi – Personally, I would pay off all my credit card debt prior to buying a house.

Putting 26k down on a house worth 188K isn’t going to eliminate the PMI. So, buying a house with that small of a down payment is going to cost you more than it would if you waited to have 20%.

I say just pay off your cc debt, then work on the 20% down payment.

By: Cyndi

Cyndi — Wed, 09 Sep 2009 05:15:42 +0000

We are getting ready to build a house our loan amount will be 188000. I have 26000.00 i could either pay on the house so we will only be borrowing 162 instead of 188, or i could pay on my credit card debt. Which would save the most money?

By: Carnival of Pecuniary Delights No. 15: Epicurean Delights Edition | Carnival of Pecuniary Delights

Fri, 10 Jul 2009 03:28:42 +0000

[...] Money from Prime Time Money presents What Debt Should You Payoff First When You Get Extra Money. A great post on why you should have a plan even if you don’t have the extra money right now to [...]

By: Carnival of Debt Reduction » Blog Archive » Man vs. Debt has posted the Marathon Carnival

Thu, 07 May 2009 04:06:42 +0000

[...] Prime Time Money discusses which debts you should pay off first when you get extra money. [...]

By: TStrump

TStrump — Mon, 04 May 2009 05:56:44 +0000

I would definitely pay off the ‘bad’ debt first – high interest consumer debt, etc.
At least with ‘good’ debt, like investments or your house, you’re getting some kind of perceived value.

By: ctreit

ctreit — Sun, 03 May 2009 18:25:59 +0000

I guess the answer to this question also depends on how big the windfall income is. If it is big enough, debt snowballing is really not necessary. It may even be counterproductive if you applied it. You may just go for the feel-good effect of debt snowballing and then spend the rest of the windfall. It is most important to make sure that an income windfall is actually applied to debt.

By: J

Sat, 02 May 2009 11:22:03 +0000

Hate to sound like a broken record, but the daily amoritization of Federal student loans is just evil, especially for a numbers guy. Not to mention their collections personnel are just plain mean….
And I’ve always believed debt-free is the way to go, but a sudden infusion of cash (lotto, bonus, etc.) does offer a little splurge, like a nice dinner out or something. Just keep the splurge to 25% of the total, and be wise with the rest.
PS, like the new pic!