Pay off my car loan or continue saving?

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Pay off my car loan or continue saving?

Postby diane.jsmith » Tue Nov 16, 2010 3:23 am

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.

http://www.247moneybox.com
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Re: Pay off my car loan or continue saving?

Postby Jayme » Thu Jan 27, 2011 7:17 am

Keep some money in savings as an emergency fund, how much is up to you. Dave Ramsey would say $1,000 until the loan is paid off. The savings account won't earn a lot of interest, but it could be really important in case of job loss, medical emergency or car accident.
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Re: Pay off my car loan or continue saving?

Postby VeraKeisey » Wed Oct 31, 2012 1:27 am

Jayme wrote:Keep some money in savings as an emergency fund, how much is up to you. Dave Ramsey would say $1,000 until the loan is paid off. The savings account won't earn a lot of interest, but it could be really important in case of job loss, medical emergency or car accident.

Hmmm, Considering is very thoughtful.
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Re: Pay off my car loan or continue saving?

Postby Alex Chris » Fri Dec 11, 2015 2:26 pm

How much is the car worth now? You should consider selling the car and paying off the loan, and using the money to buy a cheaper car instead. If not, make sure you have 6-8 months of monthly expenses saved, then pay off the the car loan with the extra money.
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