The mortgage company collected too much in escrow, so we got a $50-ish check for the overage, and now our mortgage payment has gone down $44/month, effective November 1.
Debate....take the $44 "extra" per month toward medical debt, which is the smallest debt, but has no interest...... vs.
Add it to the payment on CC1, which has the highest interest rate.
Dave says tackle the smallest debt first. But since the smallest debt has no interest....would tackling the smallest interest collecting debt be better (CC3)??
I think he does that so that you can find some success and keep your momentum going, right? So that you will feel excited and stay on target?
ReplyDeleteThat's probably why. However, I would probably apply the money to something that was charging you interest.
If you will feel better and more motivated to pay off the medical bill then pay it off! The motivation counts for something too!
That is why he says pay off your smallest debt first so you have a sense of accomplishment. Must say I enjoy reading your and so many others blogs. Glad to know I am not in debt alone!!!
ReplyDeleteI see the student loan is the smallest debt? I would pay that off first, and I'm sure it's charging interest, too.;)
ReplyDeleteI never really think about the student loans. The interest rate on that loan is 4.75%. On CC3...it is 14.24%.
ReplyDeleteDoes that make a difference???
Mortgage or Refinancing
ReplyDeleteMy tip is to go for refinancing, it helps.
Bankruptcy or Debt Settlement
My tip debt settlement
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I agree with the points you make and sincerely hope you get out of debt real soon.
ReplyDeleteYou can follow my blog here.
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