Linked Questions
22 questions linked to/from Why would anyone want to pay off their debts in a way other than "highest interest" first?
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Mathematical method to minimize weighted interest rate on a set of student loans for a given payment? [duplicate]
See image attached. I graduated back in May. Even though my loans are in forbearance right now due to COVID and I'm still in my grace period for payments, I wanted to get a head start on figuring out ...
43
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14
answers
14k
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Hypothetically, should I pay off the smaller + higher interest rate loan first, or the larger + higher absolute interest cost?
I have this hypothetical situation on my mind and I am not sure which is the best solution.
Given:
Loan 1: $340,000 at an interest rate of 1.69% per year
Loan 2: $40,000 at an interest rate of 3.6% ...
- 441
31
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13
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9k
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Do I pay a zero % loan before another to clear both loans faster?
I have $11,000 to put toward one of my three loans. I think I should pay off the 0% car loan and then in two months it will be zero and I can apply that $635 to the 2.5 % car loan and pay it down ...
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6
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Is there an advantage to keeping a liquid emergency fund if one also has an untapped line of credit?
I've seen several financial advice websites and books that recommend keeping some amount of money (usually a function of your monthly expenses) in cash as an emergency fund. See for example questions ...
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15
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8
answers
7k
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5 credit accounts, from $1750 to $4000, all above 90% utilization. Better to pay $500 on all 5, or pay one off completely for credit score?
I have 5 cards acquired in a misbegotten, spendthrifty youth.
Utilization:
Account 1: $1600 of $1600
Account 2: $1500 of $1500
Account 3: $1200 of $1750
Account 4: $2900 of $3000
Account 5: $4000 ...
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14
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11
answers
4k
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Does the debt snowball outperform avalanche if you put the freed cash flow towards debt?
There are two main algorithms for paying off debt;
The snowball, where you put your extra money towards the smallest debt to knock them off the board faster
The avalanche, where you put the extra ...
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20
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8
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Should I pay off a 0% interest car loan or put money towards high principal student loans?
Within the past year my wife and I have paid off approximately $40,000 in debt - from her car loan, my two student loans, and other misc debt (new refrigerator, hardwood floor install). I had a car ...
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26
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6
answers
3k
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I've often heard of the "snowball" method for paying off credit card debt. How does it work?
How does the "snowball" method of paying off credit card debt work? In what ways is it superior over other ways of reducing one's debt?
bms2
15
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5
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When paying for college, should I take out (interest-free) loans and pay them off with saved money, or use the saved money directly?
If I have money in various mutual funds / 529s / other college savings plans, would it be wise to take out interest-free loans for the duration of my education (in order to allow the money saved to ...
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5
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1k
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Is there any reason to NOT pay the minimum on all but one of our loans?
My wife and I have multiple loans to pay off: car loans, student loans, and a mortgage.
Currently we pay the minimum on all but one of the loans, and put any extra we'd like to pay into the highest-...
4
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4
answers
1k
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Should I use put extra money toward paying off my student loans or investing in an index fund?
The following is what I've written so far to examine and try to solve this dilemma I'm in of whether to put my extra money toward my student loan debt or invest it, which I'll be publishing on my site ...
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5
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4
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2k
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Student Loan Payment Plan
EDIT: the OUTSTAND_PRIN is the same as PRINCIPAL since I haven't begun paying down yet, but am saving like I am paying until my 6 months is up, just in case i need the extra $3,600 for an emergency ...
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2
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1k
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Debt Consolidation, trade down car, or both?
I'm a recent graduate, working full time (started in January). I have an average of 21.318% APR across 5 credit cards with a debt totaling $11,137, at $302 monthly min.
CC #1: $2493 at 13.4%, $62 ...
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4
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2
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2k
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Can I negotiate a 0% transaction fee with my credit card company?
Whenever a month or two passes without using one of my credit cards, the respective bank usually sends me an offer for a 0% APR for a year or so on balance transfers. They send me these blank checks ...
user19035
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2
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1k
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Should I consolidate loans and cards, or just cards, leaving multiple loans?
I will start off by saying that I suck with credit cards. I just can't manage them, and if I have access to them, I end up impulse spending money. I should not need to; I earn great money, but I seem ...
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