ÅŅÑΣŦŦΣ™
|
Well, it depends on if you have already paid the interest off on the car loan. How long have you been paying on the car? If you have been paying on the car, and say you only have a year left, you have probably already paid all the interest, so there is really no benefit in paying it off early. If this is the case, I would just put the money in the bank and save it. Now, if you are still paying interest on the car, I would probaby go ahead and pay the car off.
You can call the bank or whoever you have the loan through and see how much money you will save, if any, by paying the loan off early.
Good Luck!! |
|
skwrenn7
 |
Pay it off. You'll end up saving money that way because you won't keep being charged for the interest. |
|
melly
|
Pay a chunk of it, but save some of your income tax refund for that rainy day. I'd say 75% to car, 25% to save...once you got that car out the way, you can save even more. |
|
howie r
 |
Pay off the car, then you can save the money that you would normally use to make the car payments and not have to pay the interest. |
|
tacka....
|
Both choices are good - save it or pay it off. Me, I like a little money in the bank, so I think I'd just keep making the payments. |
|
[]D[][]\/[][]D
 |
pay it off because you may be able to lower your car insurance each month and save money. plus you'll save money from the interest too. |
|
private
|
Pay off your car. Sell it. and upgrade to a newer one.
Once you get used to not making payments. You will keep
making "excuses" for yourself to spend the money on other
things, and pretty soon, you will be having more in repairs,
than the car is worth, on a 10 yr. old car. If you need to know more.There is nothing better in the "winter," than a new car
with a "warrenty."
You never put a "$1,000.00 dallars and great" in the same
sentence, when talking cars. The choice is yours. <}:-}) |
|
a1cwilliamson
|
Pay off the car and open a new savings account. You can save the interest and put your would-be payments into your new account and earn interest. |
|
Nicky
|
Pay off your car.
I read an article in the Wall Street Journal once about how stupid it is for young poeple to save for a rainy day--ie, before you're 30---since future expected income is so much higher, you're essentialy wasting what you're saving. |
|
Zest
|
u could pay it off and every month leave that money alone that u would have given for ur car |
|
rickbrokaw
|
I would pay it off with the refund because not only would you pay less but you would have financial freedom and a good credit report. The reason you would pay less is because you would be paying the principal (actual loan) and not the interest, this saves you a ton of money. |
|
Shony07
|
pay it off crazy it will help you out alot in the long run |
|
Frank
|
Pay it off. If you want savings for a rainy day, which is a very wise thing to do, then save the monthly car payments you would have been making, not just for the next 12 months, but forever. At the end of 12 months you should wind up ahead because you will save on interest. After that, you will continue to build up enough to pay more down, perhaps buy your next car in cash, which will save all the interest of buying your next car. |
|
tigerbaby76
|
definately pay it off....you'll save tons of money on the interest you would be paying over the year, plus you won't have to worry about a car payment every month....use THAT money for a rain day :) |
|
OC1999
 |
First if you are getting that much back where you can pay off a car loan a year early, you need to refigure the amount of taxes they are withholding. If they are withholding that much you are basically giving the IRS an interest free loan.
The next question is what is the interest you can save on the car payment, and the interest you would earn on savings. I bet the interest on the car loan is higher. So what you should do is pay off the car loan, and then take that money that would have gone to the car payment and put that in your savings. |
|
arch0049
 |
I am one for paying off debt. But, having money saved up also gets you out of debt. If you have credit card debt, I say pay that off first. Then your car. Then student loans. Then a mortgage if you have one.
I would say split it up. Or put in a savings account. Then each month when your car note is due, pay half of the monthly payment from your paycheck and the other half from the saved up. That way you free up some money in your monthly budget, and you have money saved for an emergency. |
|
baby #1 due 3-2-09
|
i would pay off the car.
so like u said u will have more freedom with ur money. then u can save for those rainy days. u wud be able to put money back if thats wat u wanted to do. or to just go out n buy some new jeans... |
|
vangorn2000
|
Put about a six month payment on your car and save the rest for an emergency...that way you'll cut your payoff time on your car in half and still have a little bit of a savings cushion in addition. |
|
BeBop
 |
I would think to pay off the car so you don't have to worry about a payment each month and so on.Then with the money you make every week or biweekly from you job you should save a alittle bit and so on. to get what ever you wish. |
|
Emanon
|
Pay off the car and start saving the car payment amount each month. That way you gain interest instead of paying it. |
|
Kayo
|
I'd pay off the car. If you are anything like me, the rainy day will come very quickly and you'll end up spending it on something you don't really need. If you pay off the car early, you'll have more money every month to save plus you'll also reduce the amount you would've paid in interest. |
|
CaliGirl
|
I would advise you to save your money for a rainy day. Too many times have I paid off something and then I needed the money later. |
|
DrMichael
|
pay it off |
|
whoopswhatever
|
Hi caramelqueen,
That's a great question, cause it shows how other people think about money and debt.
Alot of people just seem to 'react' without giving much thought to all of the consequences.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^...
It's always great to pay off a debt. And paying off a car loan is super for your credit score too.
...Of course it's also nice to have some money saved.
If you ALREADY have enough money saved to see you through a rough period, say losing your job or income for several months, then you might want to pay off your car loan or other debts. But if not, then you're right to consider starting a reserve safety net to give you some peace of mind in case of those emergencies we call "rainy days".
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^...
And what about your credit card balances? They usually have a higher interest rate than a car loan. And so they should be a priority for most people to pay off.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^...
anyway good luck. you will know best for your own situation.
Plz pik mine 4 bst answr
thin~Q
u r sweet if u do. |
|
beesh lii
|
paid it off! |
|
Derek
 |
Two questions:
Do you anticipate needing ready cash available or not?
Will the interest earned by having it sitting in a savings account or CD be more than the interest you're paying? |
|
tjmk0804
|
I say pay it off and save on the interest. |
|
| |
|
Homepage 
Financial
Forum 
Personal Finance 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
