Who Would You Pay First?

Is this a lump sum payment? I thought it was because you said you could pay OFF one. With a 2000 difference, pay off the car, give dad the extra 2000 and then pay him off from there with the car payment money!!

Sorry, I edited twice because you flowered before I could fix it!!!

I would pay off debt 2 as there is interest. Then the monthly amount of the car payment that I would now have at my disposal would be sent to dad.

I always pay off the debt with the highest interest. In this case, I would do the same, especially since it is $2K less. I would then, take that $2K and pay the father for a start against his loan, then make payments.

I would pay off the car, then give the other 2K to FIL. After that, take the money that you would normally be spending on your monthly car payment and make regular payments to FIL until that is settled. You won't be missing the money each month anyway because you already have it in your budget to pay it to the car loan, so just keep paying it...only to a different person.

Car! Then pay monthly what you were paying on the car to FL to satisfy hubby.

the car

then take the payment and put it towards his dad.

Car Payment

-You're paying interest on that, and not debt #1

-Your payment history will affect your credit score, not debt #1

-Your car can be collateral in the case of an emergency

-If something happens to this car and you have to get a new car, you won't have two car payments

The car without a doubt. Lender #1 isn't charging you interest and doesn't have a "time line" for repayment. Think about all of the $$$ you will save in interest alone! In fact, you could look at your car payment stub each month and figure out how much you are paying in "interest" and put that amount away for the next year to pay-off part of Debt #1!

28 women all in agreement! How often does that happen???

Car! Same reasons everyone else gave LOL

Well whichever one has the highest interest rate I guess, right?

(If it's about monetary worry. If it's about emotional worry, totally pay Dad and be done with it!)

:)

Pay off the car, and take the remaining $2k and pay down the debt to FIL.

Then, take the money you would be paying monthly on car payments and pay it to FIL until the balance is repaid. Or in the alternative, (after giving FIL the remaining $2k) SAVE the money that would have gone to the car payment until you have a lump sum and give the lump sum to FIL once a year until the debt is repaid. It may be that FIL feels weird (and your hubby too) about making/receiving MONTHLY payments. So maybe eliminate that aspect of the repayment and save up a years worth of payments and give it to him in big chunks. So, if you paid off the car in March, and gave FIL $2k in March... then save the "car payment" money until January and give FIL a big chunk next January. Then continue saving each month and give FIL another big chunk the next January, etc, until the debt is repaid in full. It would definitely help keep balances straight in your minds and might be easier for FIL to accept.

If this was black or white then I would say the car loan.

However, it really depends on how your husband feels about owing his father money. He may be the type who feels that he would be taking advantage of his father if he doesn't pay him first. Also, regardless of whether payment is expected or not, would your FIL be the type to throw it at your faces? I guess it really depends on the relationship and your hubby's values (word used loosely).

I am curious...which debt is your hubby planning to pay.

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Get rid of that car payment!!!

pay off the smaller loan first, that way you see accomplishment!

Whichever has the highest interest rate would be the one I would pay off first.

But you knew I would say that. :P

Ahhh, to be debt free.

Good Luck and God Bless

The car, of course! If you have anything left over and no other debt that is incurring interest (other than student loans and your mortgage, which are tax-deductible), then give that to FIL as a sign that DH didn't forget about it and does still intend on paying it off. Then take your monthly car payment and pay that towards the FIL or save for your next car so that you can borrow less the next time around.

the car first and left over to dad. and lower your car payments exx car payment is $500 start paying dad $250 cause the car is paid off and it frees money up for you and money for dad too.

Obviously the car. But you stated that the car payment is $2000 less than what you owe your FIL so if you are able to choose between either of these to pay them off then wouldnt that mean that you have the $ to pay off either? If so then cant you pay off the car and have money left over to throw towards the loan from your FIL?
Good Luck

haha for sure the car!!

Pay off debt smallest to largest then put that payment toward the next smallest debt.

Pay off debt #2, use the 2k to pay down debt #1 a bit. Get rid of any interest bearing debt first. Be extra nice to FIL for his kind interest-free loan to your hubs.

Car payment because it is a monthly bill and will end up saving you more money in the long run!

Car!
My first reaction was....
if the first lender doesn't consider it a loan...you can pay him back slowly over a long period of time, at your will.....so why not eliminate the debt that is considered a loan and gains interest.

M

Car payment. No way I would pay interest if I didn't have too. I could see him wanting to give back to his father. Perhaps if he won't budge do half and half. It will still cut interest down and have him feel like he is giving back to his dad.

WHY dont husbands listen to their wifes?? LOL
Most of time WE are correct ;-) or at least the "smarter ones".... heehee

Car - get that off your shoulders and then FIL will be paid off quicker as well....
Good Luck :-)

I'm not a Dave Ramsey expert, but I'm pretty sure he would say pay the car first too!!

You know this debt with fil M. be one you don't feel but you hubby might. It was from before you so how do you know. I would let him choose because he could be feeling pressure that you don't perceive.