Pay off my car loan or continue saving?
Date: Wed, 11/17/2010 - 07:00
so ive got about 10k in the bank so far, im trying to get to 20k by next april to put a down payment on some property. i took out a car loan about 3 years ago with a high interest(something like 15%). i owe 5780.80 with payments of 289.26 a month(220 in principal, 70 in interest). ive got about 2 more years and 3 months before its payed off. should i pay off my car loan or should i just make the minimum monthly payments and continue to save? right now im saving 1k a month and putting it into saving, if i were able to pay off the car i would be able to have 1300 a month to save.
I'd pay off the car. That interest rate is bleeding you dry. Y
I'd pay off the car. That interest rate is bleeding you dry. You can put that $300 per month in the bank and in that 27 month period, you'll have deposited an additional $8k in your savings account AND you'll also end up saving yourself almost $2k in interest.
Yup, pay the car off. Paying it off will also lower your debt t
Yup, pay the car off. Paying it off will also lower your debt to income ratio which is a good thing.
