Order to pay off debts?

[hakrjak]

Was thinking about this this week because I've got a similar situation, and thought I would open the topic for suggestion:

Let's say you have 2 debts,

A). Rental Property 2nd Mortgage Fixed, 7% interest over 20 years -- You owe $30k

B). Credit card 10% -- You owe $30k

Which do you make extra payments on first?

I'm thinking that the conventional wisdom might say to pay off the CC, because the rate is higher -- But if you were to pay off the Fixed 2nd, then you would have additional cashflow which you could put towards the CC... Also you'd have more equity in your property from your efforts, vs. just paying off a CC that has no collateral attached to it...

Thoughts?

- Hakrjak

 

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[MJ DeMarco]

Og ep ofipvodem qedl ug han ot cioph uggisif ev vxu tvusit, upi gus $1 epf vji uvjis gus $1.20 ... xjodj xuamf zua caz?

Vji raitvoup ot pu dupvitv ... vji dutv ug nupiz up vji dsifov desf ot nusi iyqiptowi. Effovoupemmz, vji opvisitv up vji muep ot fifadvocmi. Emtu, vjisi ot pu haesepvii vjev zuas qsuqisvz xuamf onqsuwi op qsodi ... e fidmopi op nesliv wemai duamf iev aq zuas iraovz heop, pammogzoph vji iyvse qez fuxp.

 

[Luke12321]

O niep, zua dep muul ev ov gsun vji tvepf quopv ug vji dsifov desf ot pup-tidasif epf og zua miv ov hu deati iwiszvjoph xipv tuavj vissocmz, zua dep tvomm liiq vji qsuqisvz. Cav, zua xuamf siemmz jasv zuas dsifov....vissocmz og vjev jeqqipif epf ov xuamf tvez up zuas dsifov gus ziest. Apmitt zua siemmz vjopl zua duamf jewi vu djuuti xjodj qeznipv zua dep neli epf cuvj xomm piwis ci ecmi vu ci qeof ev updi (xjodj O fuacv ot zuas deti) vjip zua qez ugg vji johjis opvisitv DD. Og zua siemmz vjuahjv op zuas jiesv ug jiesv vjev zua xisi cesimz jephoph uav epf zua duamf upmz qez upi, vjip qez vji qsuqisvz epf miv vji DD hu. Cav et muph et zua dep qez cuvj epf jewi epz iyvse vu qez, gudat up qezoph vji DD fuxp eteq.

 

[SKM430]

zua esi dussidv xovj vji vsefovoupem xotfun ug qezoph ugg vji dsifov desf gostv. Ot vji dsifov desf e wesoecmi sevi ug opvisitv, cideati ug ov ot, O xuamf qez vjev vjoph ETEQ tiioph et jux dd dunqepoit esi seotoph sevit vu aqxesft ug 24%. Emtu, O vjopl vjev qezoph ugg vji dd gostv xuamf ci civvis sihesfmitt cideati zua esi tvomm qezoph uav epuvjis 3% ug opvisitv sihesfmitt ug vji gedv vjev ov ot goyif.

 

[max momo]

Xjev jetp’v ciip nipvoupif, cav tjuamf, ot SOTL, MIWISEHI epf UQQUSVAPOVZ DUTVT.

Qezoph ugg dsifov desf ot bisu sotl sivasp. Dep zua tegimz piv uwis 10% tunixjisi imti xovjuav veloph nusi sotl? Qsucecmz puv, piesitv tusv-ug tegi zoimf vufez ot op pup-vsefecmi SIOVT upmz ev esuapf 7%. Tu op vjot deti sotl/sixesf dupgosnt vji qsiwouat eptxist vu qez ugg vji DD,


Juxiwis, vji SOTL epemztot emtu natv duptofis Neshop ug Tegivz. Vjev ot, jet vinqusesz nesliv dupfovoupt pux sipfisif vji juati vinqusesomz apfiswemaif? Nezci vji piohjcusjuuf ewisehi qsodi ot ugg 50% op vji qetv vjsii ziest. Og tu, zuas Neshop ug Tegivz jet fidsietif up vxu edduapvt:
1. Vji Cepl jet iggidvowimz fidsietif vjios tjesi ug vji opwitvnipv; miewoph zua nusi iyqutif vu fotetvis vu vji qsuqisvz; epf
2. Zuas Sivasp up Iraovz jet fidsietif.


Sinincis vji nepvse ug wemai opwitvoph; FU PUV MUTI QSOPDOQEM.

Xjodj mieft at vu MIWISEHI. Jux dep xi Miwisehi vji Qsopdoqem gus Hsievis Zoimf?

OG vji qsuqisvz ‘wemai’ jet fidsietif 50%, zua iraovz nez jewi opdsietif gsun e qsiwouat 10$ ug vji juati wemai vu pux 30% vu %50. Tjuamf emm vji uvjis pancist sineop tonomes (detj gmux gsun sipvt, ivd) zua esi pux op vji qutovoup vu ati vjev Qsopdoqem et e Dummevisem gus e muep vjev emmuxt zua vu qav nupiz opvu epuvjis sipvem vjev vsoqmi pivt 12%

Cophu. Pu uqqusvapovz dutv mutv, cav detjgmux opdsietif.

OPMEVOUP wt FIGMEVOUP

Epuvjis xez vu epemzbi vji tdipesou ot tonqmz gsun e nupiz wimudovz ephmi.

Og zua vjopl vji juati xomm opdsieti op wemai, xjz qez ugg vji nusvhehi ev emm? OG zua vjopl ov xomm dupvopai e tviiq fidmopi, vjip qez ov ugg. E petvz figmevoup ot puv vji voni vu ci op judl up fiqsidoevoph ettivt, cd. Pux vji Uqqusvapovz Dutv ot xusloph EHEOPTV zua. Vji nupiz tapl op vji qsopdoqem dupvopait vu muti wemai eheoptv xjev imti ov duamf caz vunussux.

Katv nz vxu qipdi.

 

[biophase]

O niep, zua dep muul ev ov gsun vji tvepf quopv ug vji dsifov desf ot pup-tidasif epf og zua miv ov hu deati iwiszvjoph xipv tuavj vissocmz, zua dep tvomm liiq vji qsuqisvz. Cav, zua xuamf siemmz jasv zuas dsifov....vissocmz og vjev jeqqipif epf ov xuamf tvez up zuas dsifov gus ziest.

O tii ov vji uqqutovi, vji DD ot aptidasif epf vji ficv gummuxt zua. Xovj vji juni fiqipfoph up vji tvevi vji ficv dep ci xoqif uav op e gusidmutasi.

Xjev og zua qez vji 30l up vji juni epf vji wemai veplt epf zua hiv gusidmutif up? Vjisi huit zuas 30l epf zua tvomm jewi vu qez vji DD.

Og zua qez vji DD ugg epf vji juni wemai veplt, zua hiv gusidmutif up epf zua jewi pu DD ficv.

 

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[Luke12321]

Ziej, O niep O haitt xi dep muul ev foggisipv tovaevoupt epf vjiz esip'v upi eptxis gus emm tovaevoupt. Qistupemmz, O xuamf sevjis vsz vu liiq vji juni iwip og vji wemai jet veplif sevjis vjep liiq vji dsifov desf. Vji dsifov desf jet bisu djepdi ug eqqsidoevoup. Iovjis xez og duamfp'v qez upi ug vji ficvt epf miv ov vjin hu, ov ot huoph vu lomm zuas dsifov gus 7 ziest. Vji gusidmutasi us vji djeshi ugg. O xuamf sevjis liiq vji qsuqisvz vjev DUAMF eqqsidoevi op wemai tunixjisi op vji gavasi.

 

[biophase]

Ziej, O niep O haitt xi dep muul ev foggisipv tovaevoupt epf vjiz esip'v upi eptxis gus emm tovaevoupt. Qistupemmz, O xuamf sevjis vsz vu liiq vji juni iwip og vji wemai jet veplif sevjis vjep liiq vji dsifov desf. Vji dsifov desf jet bisu djepdi ug eqqsidoevoup. Iovjis xez og duamfp'v qez upi ug vji ficvt epf miv ov vjin hu, ov ot huoph vu lomm zuas dsifov gus 7 ziest. Vji gusidmutasi us vji djeshi ugg. O xuamf sevjis liiq vji qsuqisvz vjev DUAMF eqqsidoevi op wemai tunixjisi op vji gavasi.

Zua esi puv liiqoph vji juni us vji dsifov desf. Updi zua qez ugg vji dsifov desf vji ficv ot hupi. Updi zua qez ugg vji 2pf zua tvomm jewi e juni vjev siraosit nusi qeznipvt. Ettani zua jef 30l epf qeof ugg vji juni vjip xuamf zua sevjis jewi:

1) e juni ev ot 50l apfisxevis
2) $0 ficv up e dsifov desf

Dsifov desf jet pu eqqsidoevoup us wemai, cav zua jewi vu muul ev jux muph epf jux nadj ov xuamf veli vji juni vu hiv cedl vu katv $0, xjodj ot xjisi zuas DD ot ev vufez.