agreed average_joe,

it has to be worth your while..
I'm thinking about the credit cards where you can get 6.9% interest.. these credit cards are rare, and you need good credit to get them, however that's what people should aspire to get

If the low interest credit card is below 10%.

That's true JeanKarla,
People are impatient and want their car now.. I think people should take a year or two to save up for a vehicle. This would put cash in the bank and get them saving their money on a regular basis.

This would also keep car prices down.. Car prices are through the ceiling because people have easy access to credit. And people spend more on cars then they should because they have easy access to credit. If a person would have to save 10% down payment at least for a car, they would think twice before spending all of that money!!

Should people use a low interest credit card to purchase a car?

A person obtains a car loan when he or she does not have enough monetary funds to purchase an automobile. It is a very common occurrence since it is difficult for people to save and collect funds and build up a substantial amount in order to purchase an item like a car that can be extremely costly and needs a bulk one time payment.

It is also very risky and this is when people decide that instead of saving up money after every pay day, one could ask another institution which has that kind of money to make the purchase for them and they could later pay back the car loan through minor payments made every month.

GETTING A CAR LOAN: http://www.cma1.ca/698

I'll never forget the example of a person I met when I worked at Household Finance (three month stint in 1986) in Toronto..

This fellow was in debt $85,000 and spent the better part of 10-15 years paying off his debt... I was thoroughly impressed with his story.. I don't think this guy made alot of money, but he was honorable enough to pay off his debt.. I don't think he had much of a life during those years.. but he was determined to get his debt paid off.

I think people should take the same approach when paying off expensive credit card debt... while saving for emergency funds they should allocate as much money as possible to pay down debts... allocate much less for entertainment and non-essentials...

You'll have less fun this way but after you have successfully paid off your expensive credit cards, you'll be back in control and able to do the things you really want to do

DanielBL,
I agree for the most part... what I'm trying to get people to do is develop emergency funds and some intermediate funds... this is to keep you out of trouble... yes... you earn a ridiculously small amount of interest, but that's a "cost" of keeping safe...
I have emergency savings in place that earn very little... but I have peace of mind knowing that I have any type of household expense covered.

Your idea of paying down the most expensive credit cards first is absolutely correct!! That's the best idea when it comes to high priced credit cards and loans.

Not really. Pay off the car loan asap. Always get rid of the high interest debt first. That is unless you anticipate getting a mortgage in excess of 15% (Just kidding).

The bank only pays 1% or 2% before taxes on your deposit, even less after. Why exchange one investment that pays 1% for another that costs 15%?

and... so that's why you're promoting a payday loan site?

what is the interest rate you're paying on your loan?

based on what you've said... i would just keep doing what you're doing... having cash in the bank will do you better than just paying off your loan