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lubasha
1 day ago
7

The concept of​ "Power Payments" will help you repay your loans faster and reduce your total interest payments. Consider a situa

tion where you have 3​ loans:
Loan A has a loan payment of​ $500/month and an interest rate of​ 5% APR;
Loan B has a payment of​ $200/month and an interest rate of​ 3% APR;
Loan C is a credit card with a payment of​ $300/month and interest rate of​ 18% APR.
You just made the final payment on your auto loan​ (Loan A). ​ Yahoo!! What should you do with the​ $500/month payment that you no longer have to pay on Loan A if you want to reduce your loans as fast as​ possible?
Business
1 answer:
Nady [3.2K]1 day ago
6 0

Answer:

Your priority should be to settle loan C, as it entails the highest monthly payment and the steepest APR. Paying off your credit card balance (loan C) as soon as possible is advantageous.

In contrast, loan B requires a lower monthly payment and features a significantly reduced APR.

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