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Where to apply payments.

May 21st, 2007 at 02:38 am

I got my first real statement with my Balance Transfer. I took the amount I did because I didn't want to have too much of a monthly required payment. I was expecting it to be $275 and it is $160.

Balance Transfer balance: $10,573.30 at 3.99% min $160 budget $275
Loan balance: $16,432.10 at 10.9% min $391 budget $523

Should I shift $115 from the balance transfer payment to the Loan? I know it makes mathematical sense to do it..but I really want to have the BT paid off by April 2010. Actually I want it all paid off by then but at the least the BT.

1 Responses to “Where to apply payments.”

  1. shiela Says:

    If it was me I pay off the Loan first. If my calculation is right you'll be paying $149p/m interest on the Loan whereas you will only be paying $35p/m interest on the BT. So the sooner you pay off the loan the better.

    3.99% is really low, mathematically you are better off only paying the minimum and putting the rest into an online account that pays more than 5% interest.

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