Living on a Budget, Saving Money/Debt free!


I'm 24 and have started working on my debt in order to buy a house in 5 years. My question is I have 2 car payments:

Loan 1$3500 @ 2.99% 2 years
Loan 2 $7500 @ 3.99% 4 years.

I recently came into some extra money from Uncle Sam, $4500 and wanted to know if it was better to pay off loan 1 or cut loan 2 down by 1/2?

Dear Evan,
I recommend reducing loan 2 by over half.  I think I understand the details on the length of time still left on the loans.  I usually recommend getting rid of higher rates of interest.  Just a word of advice.  Be sure to apply the extra payment specifically toward the principle.  Don't just send extra money or double payments.  You'll save a great deal in interest by paying the principle down.
I wish you well.
Kind Regards,
KD Liz

Living on a Budget, Saving Money

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Kindred Beisinger penname K D Elizabeth Beisinger


I can answer questions pertaining to budgeting, savings, debt reduction, and total freedom from debt. I can assist in prioritizing expenses and obligations. I am willing to share and offer guidance in realistic money management, modest investments, and financial freedom. I am not an investment counselor, broker or accountant, I am a missionary that does not do fund raisers or ask for donations.


I live comfortably and have been debt free since I was 40.

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