Pay off Auto Loan or Continue Making Payments?

[HowAboutThis]

I have never believed that paying ANY interest on a depreciating asset is a good idea from a financial standpoint. $600.00 @ month just to drive a car is ridiculous.

Good thing it's an appreciating asset nowadays

 

[HowAboutThis]

I had 2 car loans. Still have 1. The current one has 0% and is due to be paid off in 9/23. The one I just paid off was .9% and was due to be paid off in 8/25. I was putting double payments down plus extra. So my $362/mo became $724+. What I plan to do now is take $362 and put towards my mortgage and the other $362 and extra and put in savings. I was paying more in interest than I was making on my savings and I just wanted to get down to 1 loan. So now if anything happens like loosing my job I have one car paid off the the other almost. Though, I didn't pay the loan off with one lump sum which I could have, I did pay off early without hurting my account while saving some money in interest. Just what I did. Doesn't mean it will work for everyone nor that it is the correct decision for anyone but myself. I could pay off the other loan too but with 0% I see no reason. So now, I can cut my mortgage time, save money on interest while saving some extra money too so I can save for a new house.

I did the same for my student loans. Anytime I got my tax refund I would but a few thousand up to maybe 6k toward it. When I got tuition reimbursement I put it directly down on the loans. When I paid off one of the individual loans and my monthly payment dropped I made extra payments to bring it back to what I was originally paying to cut the amount of interest I was going to be paying.

You're not making more than 0.9% on your savings right now? Money market mutual funds and savings accounts are paying AT LEAST 1.70% currently. Some money market mutual funds are 2.1% and increasing.

 

[eljefino]

What bank is paying 2.6% interest????? I would like to find that out..

The US Treasury I-bonds track inflation and are paying 9.62%, guaranteed. If they aren't part of your portfolio, they should be.

 

[Wheel366]

You're not making more than 0.9% on your savings right now? Money market mutual funds and savings accounts are paying AT LEAST 1.70% currently. Some money market mutual funds are 2.1% and increasing.

Nah man. My regular savings is paying .3%. I need to link up with a financial advisor but I have no time!

 

[joekingcorvette]

I don't like debt and would pay it off. If another problem arises you can always find a new solution. Once you get used to having things paid off you wont want to get into debt again....ever again. Peace of mind means a lot to me and don't get in a big hurry to buy unless you can pay cash.

 

[HowAboutThis]

Nah man. My regular savings is paying .3%. I need to link up with a financial advisor but I have no time!

Just go online and open a savings account with almost any online bank paying 1.70%+. Super fast and easy. No financial advisor required. Just a choice between bank (FDIC insured) and no insurance (money market mutual funds).