Michigan - Saginaw County | Financially you have the right idea to retire debt as soon as possible to reduce interest costs... Your method is a bit suspect though...
Going behind on the land payments to push the tractor payments is not the correct method...
Make both payments on time to protect your credit rating and to avoid penalty interest charges...
Then with any left over cash put half of that onto the principal of the tractor loan as that is the smaller debt...
Keep the other half the of left over cash for unforeseen financial problems next year..
Next year if there are no unforeseen expenses and if you have another good crop then roll the left over half onto the principal of the tractor loan - and repeat the above method of apportioning the new cash reserves ... |
Forbearance on mortgage to pay off tractor
