I have 3k saved and ready to put down on my debt.
I built my emergency fund bigger than necessary so now I want to put 3k down.
My dad insists since my car loan has a higher percentage rate than my student loans, it’s better to pay on them.
I’m not sure if I’m missing something but in my head the student loan, though having a lower rate, will rack up faster due to the higher balance.
This is really a simple question but my thinking isn’t incorrect is it?
Edit: thanks everyone; my dad is in fact correct.
The total balance of the loan should not be taken into account when figuring this out. I over complicated it.
Also to the homies messaging me asking if I even went to college, why yes, yes I did. I am not embarrassed to say I am an engineer who did the mental math wrong and reached out for help. I hope you can be nicer to people with honest questions in the future. No one wants to be made to feel stupid.
Happy New Years ; cheers.
Submitted December 31, 2018 at 11:35AM by yogurtcowsayshi http://bit.ly/2EZwveM
