I started getting my finances together, and am paying my credit card debt down. I’m down from 34k to 9k in credit card debt and I expect to have it paid off by September. I also have a car loan that has an interest rate of 6.8%, I owe 17k on it. (I know, too many bad decisions were made and now I’m trying to fix things) I currently contribute 5% to my employers 401k to get the match, and I have total of 25k in investments between 401k and brokerage accounts. All my investments are in s&p 500 or total market cap. I’m wondering what would the right decision be after paying my credit cards off? Should I try paying off my auto loan as soon as possible or should I just keep paying the minimum and invest the money instead?
What I’m thinking: try to refinance with a credit union and get a lower rate, if I get anything below 5% (unlikely) then keep paying the minimum payments for the auto loan and invest my money. Otherwise, build an emergency fund for 3-6 months then start paying the loan off ASAP.
I want to hear your thoughts and would like to know if there are other options that I’m not thinking about.
original posted by LukeSue to r/personalfinance on Sun, 14 Apr 2024 15:31:21 GMT.