should I pay off car loan or home equity loan first?

I have taken a car loan with $9000 at 3.2% interest and a home equity loan with $12000 at 5.29% interest. Now I’m out of work. I have little money by which I want to pay-off some debts. My question is: should I pay off car loan or home equity loan first?

4 Answers

You pay the loan with the highest interest rate first.

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com/paydayloan/dealingwith-illegallenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
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You pay the loan with the highest interest rate first.

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com/paydayloan/dealingwith-illegallenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
http://www.debtconsolidationcare.com/statute-of-limitation.html

I still owe $5000 on my home equity loan and $7000 on my car loan. Thanks both of you for your reply.


In my opinion, it will be better if you could pay off the home equity loan. This will help you in saving your property from the chances of foreclosure in future.


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