Should I pay off my car loan or keep the money?

Question

I have 12,500 and 5 years left on my car on my car loan at a 4 percent rate. I have 25,000 in savings. Should I pay off the car loan or just keep the money?

Answer

Pay it now. The interest rate is low, but it’s still there which means you’re losing money. Pay off the loan and then put the money you’d be paying for the car into a high yield savings account. Right now they’re around 4% so you can make the money you would lose.

Answer

Open a new account, put 13,000 in it so the money is put aside and you will be less likely to spend it. Then set your car payment up for automatic monthly payments from that account so you technically have paid it off but it will still be financed and you can build your credit score

Answer

From my experiences, you would be better off saving the money you have now. The point of a loan is to pay it off overtime so it helps your credit score and shows future companies you'll possibly need to work with that you are good with paying back debts. Once you pay off a loan your credit score will most likely drop. This is due to the fact that a part of your credit score is based on how many accounts/loans you have to your name. The more the better because again, it shows that you are good at paying back debts and you are trustworthy. I was in the same boat as you and trust me it was hard to not just pay it off all at once. I am someone who hates having debt and feeling like I owe someone something, but I found paying it all off at once comes with many drawbacks. Unfortunately, in todays society it's better to not think that way because of how banks, credit card companies, and other financial businesses operate. Save the money you have now in your savings for future down-payments you'll need to make. Each month for your car payment you don't just have to pay the minimum. You can pay a bit more if you have it. But always remember to keep saving each month to increase your savings. Even if it's a little bit like $25 to hundreds, it all helps. Try not to ever touch your savings unless it's absolutely necessary. You never know what might happen and when you'll need it most.

Answer

Watch Caleb Hammer on YouTube!!!! How long have you been paying on it? At 4% you’ll have a higher return on your money in the stock market long term, but if you’re early on in the amortization schedule paying it down is probably the way to go. If you’re over halfway, minimum monthly until it’s gone and invest 🤑

Answer

I would pay it off and then make your monthly payments back to yourself. So you will be paying yourself your own interest. Honestly, it’s the best thing my hubby and I have ever done. We are paying our saving back. Our account got back up to where we were in no time. Good luck on your decision.

Answer

I would pay it off and save that extra money

Answer

I’d pay it off. One less bill

Answer

What I do: I pay it off fast but not at once. Divide it over 1 year so around $1,050 a month for 12 months. Your practically interest free, your still building your credit and not harming yourself by cutting your savings all at once.

Answer

Pay it off.

Answer

I would pay it off. Simply because it doesnt deplete your savings, yet it frees up monthly income AND(if you so choose) makes it just that much easier to build your savings back up, since you're transferring your original amount, plus the car note every month. You would be back up in no time!

Should I pay off my car loan or keep the money?

Let's Glow!

The Top Baby Tracker App: Embrace New Beginnings with Tender Care

The Top Fertility Tracker App: Your Path to Achieving Pregnancy

The Top Pregnancy App: Nurturing Your Journey to Motherhood

The Top Period Tracker for Empowering Your Menstrual Health Journey