Which is better to pay off car loans, credit card or put money toward mortgage.?

Pick the credit card with the highest balance and pay it off. Then go to the next one and pay it off -then the next.

After that go to the car loans....start with the car loan with the highest balance and pay it off.

Even if the interest is higher on a card with a lower balance you are still paying more because its compounded on the total balance.

1. Lets address the question of transferring your credit card balance.

First you should be aware that when you transfer the balance from the current credit card, it is highly likely that the transfer will trigger a change in the interest rate on that card. It will very likely go to 18%, so that card will be of no value after that.

You should make sure that the rate on the new credit card will not be so high that the 9 months of interest saved will be worth it. And make sure that they mean that they will not CHARGE you any interest until 2008. Usually what they do is when they do bill you in 2008 they will actually bill you for all of the interest that would have been accrued during 2007. So you end up worse off than you would have otherwise been.

So you will be destroying a good credit card relationship and buying into another credit card relationship which may not be as good in the long run. Ever heard of out of the frying pan into the fire? Think it thru beyond 2008.

2. I would suggest that you do the following, consolidate your three debts into one home equity loan. Go to your bank where your mortgage is held and figure out what interest rate you would be paying, what fees would be charged and what your monthly payment would be if you consolidated the three debts totaling $29,900 into a single home equity loan.

Take the home equity loan and pay off all three of these debts.

The interest you pay on the home equity loan is tax deductible and so your after tax rate will probably be much less than you are currently paying on the three debts which you are currently paying with after-tax dollars.

3. As for your tax refund, use it to pay down the credit card debt.

Good luck.

I would pay down the credit cards first. Yes, you may get a temporary break on the interest, but after the 0% loan time is up, you'll still owe all that money at higher interest rates.

The mortgage is the last thing you should pay extra on. Right now it probably costs you something like 5.5% to 6.5%? Plus the interest that is paid is tax deductible.

One person here advised consolidating into a home equity loan. I would not do that at all. First, the Home Equity Loan will almost certainly be higher than the cars interest rates, plus you'll only be putting your house in jeopardy if you can't make those payments. As it is, if you can't make any payments, the credit cards get screwed and they can't take your house or cars.

The amount of money down that you put towards your new car loan will not only make your application look better but it will also lower the risk for the lender. Bad credit or no credit is a risk for the lenders because of the previous credit history, it affects the way that they look at it. If one is putting no money down and looking to purchase a car even if it's inexpensive, it will be pretty hard to accomplish. This is because of the previous credit history, and the lender doesn't have any collateral. Also with a large amount of money down this will help get the attention of more lenders, getting you competitive rates, and a better chance to get approved for your new car.

Also take into consideration the vehicles that your are choosing, you must be flexible with the payments, but at the same time you have to make sure it's affordable and fits your budget. If it doesn't meet your budget and you finance the car anyways. You may end up getting it repossessed within a few months or years. Look for vehicles that book out to their value. A book out is the amount that a certain car can get loaned up to. So by choosing a car that doesn't hold its value may not be the right choice, because the bank may not even finance you on that particular car. Get all information abouit car loan at: http://www.credit-card-gallery.com/article/188,Get...

I think you're better off sell that "vacation"home unless you know it'll rise in value in the not too late future. If you can pay your mortgage, or credit card bill, try to contact money management to have them negotiate the interest rate down for you. Make sure you pay off all existing loans first. A person who can't handle his/her own finance is as bad as a person who can't handle their emotions - life is hard not to be chaotic that way. Live healthy, happy and (credit) loan(s) free.

Credit cards are a risky business. Even at 0% until 2008, you should pay off the credit card first. If you don't you are simply postponing this payoff until later, and not solving the issue.

Generally credit cards have the highest interest rate, and they can also tack on fees, etc, etc. and change the rules along the way.

I would not suggest paying more on your mortgage until your credit card and car loans are paid off.

I would recommend cars first, then cards, then mortgage.

Your cars are straight bad debt- there is no way around it. you probably cannot sell them for what you owe, and you cannot borrow against them.

Cards at least you can pay down and use to build your credit or learn to control them and use them to help you buy assets that will put money in your pocket.

Your mortgage is building you equity, there are tax breaks, etc. You can borrow against it, and the small amount you would be paying towards it would not make as big of difference as it will paying off cars or down cc debt.

Put your money to work where it will have the greatest return.

My two cents.

Pay on your highest rate. You did not mention the rate on your mortgage, but if your mortgage is less than 7.9% pay on the credit card. Not only is that your most expensive debt item the more you pay on that card the less the fee will be for the balance transfer.

What will be the interest rate on the new card in 2008? Will you be able to pay off the balance before it kicks in? Generally, the best thing to do is pay off the one with the highest interest rate first.

i would look into a refinance to see if rolling all your debts into your mortgage will reduce your overall monthly expenses. also you will have a great tax benefit at the end of the year.

one this i worry about when it comes to opening a new credit card is going over 50% of the available balance as this can decrease your credit score!