Getting a tax return and want to allocate it to my debts.
Date: Wed, 02/28/2007 - 10:25
1. 67K in a HELOC at 8.5%
2. 13K in a CC at 12%
3. 14K on a 5 year car loan at 5.9% interest
4. $7640 returning to me in Fed taxes.
How best should I allocate this money to pay down my debt?
I also have good credit (700) and need to know if I should re-fi my heloc in to my 1st mortgage (Home Valued at $330k, owe $220k)
I personally would pay the highest interest debts first . . . .
I personally would pay the highest interest debts first . . . . . If you are current on all your payments, then tackling the highest interest makes sense.
As far as the re-fi goes, you could put the line of credit into your mortgage, but I'd say it would depend on what kind of rate you get.
I agree
I also think you should pay the most toward your higher interest rate debts (the CC) first, but of course, don't give the CC all of your money, pay about 1/3 to your HELOC. That's just my opinion but I'm definitely not a debt consolidation expert by no means. ;)
Divide the money by making larger payments towards those that ar
Divide the money by making larger payments towards those that are catching highest interest rates. This way, you will show activity on all your accounts. I will give more preference to the secured debts just to avoid any chances of repossession.
