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Fortunately (in this example) the smallest debt usually has the highest interest rates. Usually people's smallest debt is their credit cards, the next smallest
by keltex 16y ago
Fortunately (in this example) the smallest debt usually has the highest interest rates. Usually people's smallest debt is their credit cards, the next smallest their car loans, their next smallest their student loans and their least smallest the home loan.
- eru 16y agoIn the UK student loans probably have a smaller interest than a mortgage.
- joshuacc 16y agoExcept that most people I know of have multiple debts on most of these categories. - 4 credit cards - 2 car loans - 2 student loans - 1 mortgage Individual debts don't follow the same distribution as the categories.
- corin_ 16y agoMost people you know have 9 loans?
- joshuacc 16y agoThat was an example of a common distribution. Some of the debts are things like a $500 credit card balance. Of course, I was thinking mostly young married couples, so it may not hold outside that demographic.
- philwelch 16y ago9 semesters of college on loans is 9 loans. Sometimes 18.
- corin_ 16y agoAh, in the UK you just pick up a single student loan to cover all your tuition. Thinking of most people I know whose finances I roughly know about... I'd say the average is one credit card (probably just $500-$1000 limit, not neccesarily maxed out, often paid off in full each month), no general loans, and a mortage and/or student loan depending on their need for them.
- JoeAltmaier 16y agoIn which case, just put them all on the mortgage (if you have equity). Usually the best interest rate.