Now that the credit card payoff is within sight I need to decide which loan I'm snowballing next. Should it be mortgage #1 or the car loan?
I have gone back and forth on this decision, but I'm leaning toward the car loan right now.
The mortgage has a higher interest rate than the car loan and has a lower balance. If I were to snowball into that loan it could be paid off in 2008.
But my thinking is that the car loan is for something that depreciates quickly and if we were to have to get another car and this loan were not paid off we'd be rolling a lot of money onto another loan.
What would you guys do?