Much depends on the interest rate. If it's 3% or below I wouldn't bother paying more than the minimum no matter what since the rate of inflation is about that.

If it's more, then it would depend on how much more. For just a percent or two I still might not bother and look into investing the money instead. If you're paying a lot more then I'd consider dipping into emergency cash - the amount would depend a lot on the interest rate.

BTW, I hope your emergency account is in a Roth. You can withdraw what you put in at any time without penalty while getting a tax-free return on earnings.

2 ...

Report Post

Posted by Vols&Shaft83

Throbbing Member

Member since Dec 2012

69932 posts

Posted on 2/11/13 at 12:28 pm to foshizzle

quote:
BTW, I hope your emergency account is in a Roth. You can withdraw what you put in at any time without penalty while getting a tax-free return on earnings.

Ok once again, I think this is shitty advice. Yes you can withdraw your contribution at any time, but you cannot replace your contribution at anytime. Why would you sacrifice the opportunity cost of a ROTH IRA because you can't live with the idea of leaving $5,000-$10,000 alone in a money market or savings account for emergencies? I simply cannot understand this logic.

0 ...

Report Post

Posted by kennypowers816

New Orleans

Member since Jan 2010

2446 posts

Posted on 2/11/13 at 12:34 pm to foshizzle

I agree with foshizzle.

But if you're itching to pay it off quicker, I understand. I was there with my car. I've had the savings to pay it off since I bought it, but I wanted to build the credit history and the rate was so low that it wasn't hurting to keep paying it. I ended up just paying off a large chunk of the principal to get the balance below $5k. Made it feel nice that I could pretty much just cut a check any day to get my title.

1 ...

Report Post

Money Talk - Replies to Post

Return To Board

Page 1

Return To Board