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Started By
Message
Should I pay off car note with savings??
Posted on 5/13/19 at 11:35 am
Posted on 5/13/19 at 11:35 am
It seems like a good deal to me, but I'm no money guru.
I owe $19k on the truck, at around 4% interest. Thinking about taking from savings, which would cut it in about half, to pay it all off... I'm no baller.. savings account interest is basically 0.
Is it a good idea?
I owe $19k on the truck, at around 4% interest. Thinking about taking from savings, which would cut it in about half, to pay it all off... I'm no baller.. savings account interest is basically 0.
Is it a good idea?
8
Posted on 5/13/19 at 11:57 am to RouxDog91
so you have 38k in savings?
how much do you make annually?
do you have investments?
what do you have?
do you have a house note?
if that 38k is all you have then no i would not pay it off at that interest rate. if you have lots of money elsewhere and the principal used to pay it off can be replaced within a fair and quick timeframe then you can pay it off.
you need to provide way more info.
how much do you make annually?
do you have investments?
what do you have?
do you have a house note?
if that 38k is all you have then no i would not pay it off at that interest rate. if you have lots of money elsewhere and the principal used to pay it off can be replaced within a fair and quick timeframe then you can pay it off.
you need to provide way more info.
This post was edited on 5/13/19 at 11:58 am
Posted on 5/13/19 at 5:36 pm to Fat Bastard
As long as you keep 6 months liquid as emergency savings, go for it. Without the note, you can ramp up your savings quickly if you are disciplined.
Posted on 5/13/19 at 8:12 pm to RouxDog91
Usually pay your highest interest debt off first unless you are receiving tax breaks from it.
Posted on 5/13/19 at 8:41 pm to RouxDog91
I say pay it because I don’t keep car notes. Having a car note one’s whole life is probably the number one thing keeping people broke in America.
People think they can afford cars if they can swing the note. I think if you can’t pay cash for it, then you can’t afford it with the only exception being a mortgage because houses usually appreciate.
People think they can afford cars if they can swing the note. I think if you can’t pay cash for it, then you can’t afford it with the only exception being a mortgage because houses usually appreciate.
Posted on 5/14/19 at 10:08 am to Vastmind
quote:
I say pay it because I don’t keep car notes.
again, if it is his only note it is not a big deal. you do not know if he will have one his whole life. he has answered zero questions in order to help him. looks like another hit and run poster, the type i abhor here. if they were that worried they would answer the questions.
This post was edited on 5/14/19 at 10:10 am
Posted on 5/14/19 at 12:04 pm to Vastmind
quote:
Having a car note one’s whole life is probably the number one thing keeping people broke in America.
That and people don't save for retirement.
Posted on 5/14/19 at 4:07 pm to RouxDog91
Not enough info but for me if I had a bill I can afford but was paying moderate interest on I wouldn’t wipe out my savings to get rid of it because should something new come up then what do you do? Sell the car?
When I was younger and paying off things and saving I wouldn’t trade paying off a car faster by not saving for retirement. The money stayed split into things not solely focused on getting rid of one bill.
When I was younger and paying off things and saving I wouldn’t trade paying off a car faster by not saving for retirement. The money stayed split into things not solely focused on getting rid of one bill.
Posted on 5/14/19 at 8:41 pm to RouxDog91
I avoid debt, but I also avoid having so little cash savings that I can’t handle matters like a car repair, new roof, vacations, etc. without incurring more debt. Eventually it builds up enough to pay cash for cars, home remodels, etc.
With just 4% on the car note, I’d lean to continuing to build that savings. Maybe pay a little extra principal on the note, but don’t wipe out my savings. For sure look for a better place to park the cash. Should be able to easily get 2% and more in FDIC insured accounts like Capital One money market.
With just 4% on the car note, I’d lean to continuing to build that savings. Maybe pay a little extra principal on the note, but don’t wipe out my savings. For sure look for a better place to park the cash. Should be able to easily get 2% and more in FDIC insured accounts like Capital One money market.
Posted on 5/14/19 at 10:07 pm to Twenty 49
Car notes keep ya broke. Pay it off, pay yourself the car note.
Posted on 5/15/19 at 11:39 am to RouxDog91
It’s a great idea. I would pay it off yesterday.
Posted on 5/15/19 at 7:01 pm to Twenty 49
quote:
With just 4% on the car note, I’d lean to continuing to build that savings. Maybe pay a little extra principal on the note, but don’t wipe out my savings. For sure look for a better place to park the cash. Should be able to easily get 2% and more in FDIC insured accounts like Capital One money market.
As Fat Bastard said, he didn't provide enough basic information to give an informed answer... and he hasn't come back. But most people are safe with having 3-6 months of expenses in an emergency fund. With $38K in the bank, if his expenses aren't more than $3-4K per month, he should be more than OK to kill off that truck note. He'd still have $19K left over. At say $3500 in expenses, that's still over 5 months in the bank.
And yeah, putting the emergency fund in a high(er) yielding account would definitely be smart.
This post was edited on 5/15/19 at 7:02 pm
Posted on 5/15/19 at 7:37 pm to Jag_Warrior
And if he's toward the back end of the note, he's already paid most of the interest anyway, he's paying alot less on the remaining balance than for the original principal.
This post was edited on 5/15/19 at 7:39 pm
Posted on 5/15/19 at 10:15 pm to RouxDog91
You've probably paid the majority of the interest already. Quite a few years ago I owed $4700 on my truck and me and a friend split a superbowl square and each won $5000. I thought I would do the responsible thing and just pay off my truck and when I did my credit score dropped 30 points. I would not do that again.
Posted on 5/16/19 at 12:45 pm to deeprig9
quote:
And if he's toward the back end of the note, he's already paid most of the interest anyway,
yep and he can just keep paying notes until it hits like 5 or 6 k than pay it off yet still milk it awhile longer.
HEY OP where you at baw?
come answer the questions posed here
Posted on 5/16/19 at 1:04 pm to RouxDog91
I wouldn't, i'd put my savings in an account earning at least close to 2% thus minimizing the interest essentially paying on car note. Stay liquid and flexible.
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