Should I pay off my student loans first or my 4% car loan?
"I have $50,000 in student loans and a 4% car loan on a balance of $20,000.
Should I pay off my car loan first, or should I put that money toward my student loan principal?"
“There are two schools of thought here.
The first is to pay off your high-interest debt first. If you want to pay some principal, apply it to whichever loan has a higher interest rate.
The other idea is to pay off the smaller balance first. This is a good practice if you have problems with cash flow and you want to get rid of one of your monthly bills.
You’ll have to decide which is best for your needs.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
Will my renters insurance cover me in a legal dispute with my landlord over missing rent?
My landlord filed a lawsuit against me for rent owed. Will my renters insurance cover my legal fees?
Apr 08, 2021
Should I sell my car back to the dealer or sell it privately if I have buyer's remorse?
Is it better to sell a car back to the dealer or sell it privately? I bought a car about a month ago from a dealer, but I'm having significant buyer's remorse.
Jul 01, 2021
Should I pay off my car loan to build more credit if my score is 810?
"I have the money to pay off a car, but I've read that keeping the loan is better for your credit overtime. My credit score is 810. What's the best decision I can make?"
Jun 07, 2021