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Seeing as this is the GENERAL topic board and this is somewhat related I'll throw it out there :)

Still owe 17k on my 2010 M3 gts at like 2.5-3.5 interest - also have 8k left in student loans at 11% interest.

Everyone always says pay the higher interest rate off first - but if I kill the car loan first I'll be able to finish off the student loan that much faster. Capable of doing either right now - just need to decide which one first.
 

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Thanks for the useful post halo0 - hopefully your other 20,000 posts were a bit more helpful for everybody else.

This is a matter of opinion and I have my own and am just curious what other people would do.
 

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[quote author=drcurran09 link=topic=182885.msg3869669#msg3869669 date=1290907241]
Thanks for the useful post halo0 - hopefully your other 20,000 posts were a bit more helpful for everybody else.

This is a matter of opinion and I have my own and am just curious what other people would do.
[/quote]

Your question is simple mathematics. You have a small loan at higher interest. What's there to think about?

Your statement about "paying it off that much faster" doesn't make any sense. Are you magically going to have more money? Nope. So....make the dollars you do have to throw at the debts work the hardest. Pay off the small loan quickly, then throw your monthly income towards the car.
 

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I understand that Phillip.... I'm trying to imply that he should be getting his money back from said institution for said schooling considering he even had to ask this question.
 

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student loans definitely are the best option considering interest rates only, however there also is the factor of insurance. I know there are sometimes savings for being the owner without making payments etc,

and finally if its payed off you can remove full coverage on the car which would save you money until you crash into a tree/person/car/deer, just throwing it out there. Due to the ridiculous insurance rates in FL, I know some people who do this, but that is because they were paying 500+ a month in insurance and it went down to ~150
 

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Clearly I'm not planning on paying off the loans by their expected end dates. Obviously if I was I'd pay off the higher interest rate first - thank you for that.

I should probably rephrase my question - seeing as you are all obviously math experts. The question was more along the line of - I can pay off one now or one later - the interest accumulated from paying off either loan along my planned time line is approximately the same - give or take a hundred dollars.

It was more of this kind of question: Is it wise to pay off a new car as fast a possible? The interest rate is so low that it doesn't really matter. And there is insurance to consider.
 

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[quote author=itstillruns link=topic=182885.msg3869694#msg3869694 date=1290909557]
student loans definitely are the best option considering interest rates only, however there also is the factor of insurance. I know there are sometimes savings for being the owner without making payments etc,

and finally if its payed off you can remove full coverage on the car which would save you money until you crash into a tree/person/car/deer, just throwing it out there. Due to the ridiculous insurance rates in FL, I know some people who do this, but that is because they were paying 500+ a month in insurance and it went down to ~150
[/quote]

Thank you for the useful response - this is more along the lines of what I was asking - I wasn't asking everyone a math question.

Also - I really hope I don't ever hit a person! haha
 

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[quote author=fatabbot link=topic=182885.msg3869678#msg3869678 date=1290908184]
[quote author=drcurran09 link=topic=182885.msg3869669#msg3869669 date=1290907241]
Thanks for the useful post halo0 - hopefully your other 20,000 posts were a bit more helpful for everybody else.

This is a matter of opinion and I have my own and am just curious what other people would do.
[/quote]

Your question is simple mathematics. You have a small loan at higher interest. What's there to think about?

Your statement about "paying it off that much faster" doesn't make any sense. Are you magically going to have more money? Nope. So....make the dollars you do have to throw at the debts work the hardest. Pay off the small loan quickly, then throw your monthly income towards the car.
[/quote]

If I pay off either of the loans then yes - I will have more money for every payment I no longer have to make.
 

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[quote author=sdemo45 link=topic=182885.msg3869685#msg3869685 date=1290908858]
I understand that Phillip.... I'm trying to imply that he should be getting his money back from said institution for said schooling considering he even had to ask this question.
[/quote]

*Philip, *Fillup


[quote author=drcurran09 link=topic=182885.msg3869699#msg3869699 date=1290909957]
If I pay off either of the loans then yes - I will have more money for every payment I no longer have to make.
[/quote]
[quote author=halo0 link=topic=182885.msg3869663#msg3869663 date=1290906563]
:dur:
[/quote]
 

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I honestly hope you're not considering paying off a new(ish) car and then dropping collision. If you can't afford to write a check and pay off the loan today, you can't afford to drop collision.

To the original question, again it's all mathematics if you want to know what the fastest way to being debt free is. Other considerations in favor of paying student loan off are: 1) Pay off the loan that is unsecured first (student loan). 2) If you get in a bind and have to level your balance sheet, you can actually sell your car to make good on your loan. Can't do that with a student loan.

Loans on assets are reasonably acceptable debt. Loans on intangibles, not so much.
 

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[quote author=drcurran09 link=topic=182885.msg3869661#msg3869661 date=1290906251]
but if I kill the car loan first I'll be able to finish off the student loan that much faster.
[/quote]And if you kill the student loan first you'll be able to finish off the car loan just as much faster. 11%>>3%
 

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[quote author=fatabbot link=topic=182885.msg3869734#msg3869734 date=1290915068]
I honestly hope you're not considering paying off a new(ish) car and then dropping collision. If you can't afford to write a check and pay off the loan today, you can't afford to drop collision.

To the original question, again it's all mathematics if you want to know what the fastest way to being debt free is. Other considerations in favor of paying student loan off are: 1) Pay off the loan that is unsecured first (student loan). 2) If you get in a bind and have to level your balance sheet, you can actually sell your car to make good on your loan. Can't do that with a student loan.

Loans on assets are reasonably acceptable debt. Loans on intangibles, not so much.
[/quote]

A full-term payment history on a secured debt looks a lot better on a credit report than a full-term payment history on an unsecured debt. Something to consider especially if the OP is looking at buying a house or other loans in the near future.
 

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[quote author=dehoff link=topic=182885.msg3870972#msg3870972 date=1291081097]

A full-term payment history on a secured debt looks a lot better on a credit report than a full-term payment history on an unsecured debt. Something to consider especially if the OP is looking at buying a house or other loans in the near future.
[/quote]

Didn't know that. I hate debt, so I don't pay much attention to scores. Regardless, I'd kick the student loan to the curb before any others. In my line of work, I see all sorts of medical professionals. It always amazes me at how much cash they spend on material things while maintaining 6 figure school debt. Sorry, your school doesn't get to buy you a lifestyle until said schooling is paid for. Until then, you're still slave to your school debt.
 
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