QUESTION: I have paid 24 months of a 60 month car loan. I still owe $10,500 to pay it off but the payments are now too much for me, despite an interest rate below 5%. Should I cash in some stock or use my equity line (over 5%) to pay it off, or should I hold on a few more years to get a slightly better percentage back on a sale?
–Robin Gregory, Enka, N.C.
Question: I have $17,000 in credit card debt at a variable rate of 10.99%, which I plan to pay off using my monthly income by December 30. I have a $15,000 car loan at 2.65% fixed with 4.5 years left to pay on it, which I was not planning to pay off prior to the loan term date. I am receiving a $7,000 after-tax bonus in September. Should I use this to pay down the car loan or use it to pay down the credit card?
Question: The common advice is to not open any new credit before applying for a mortgage. If I lease a car, how will it affect my credit score, and how much time should I allow before I try to buy a home?
– Ron Sim, Los Angeles
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