I usually get laid off in the summer and I have a hard time paying my bills. My car payment is $350 every month. I have the money in the bank to pay off the entire loan. It is just a little over $1,000. Should I pay it off now so I am OK in the summer or should I just wait and keep the savings in case I need to use that during the summer. If I pay off the car I will still have some money in savings. Thanks for your thoughts.
I can still pay the loan in the summer but I was asking from a what is better to do point of view.
I would pay it off. Then start getting money back in the bank to prepare for summer. Save as much as you can NOW...for the summer...
GOOD LUCK!!!
Pay it off! I am a firm believer if getting stuff off the balance sheet. It's always better to have less debt - always.
Pay it off and start banking the $350 every month.
Good luck!
Another vote for paying it off, especially since you only owe $1000.
Advice to call TODAY and get a pay off amount to close the account. The amount on your bill may not be the same amount. If you OVERpay it may be tricky getting it back!
Congrats, it's a great feeling!
:)
I would pay it off, like today! and start to save again before I get laid off.
If your paying interest on the loan then pay it off. You will save that extra interest. I know its only a couple months but that interest can add up. then keep stashing the car payment money in the bank each month and you will build the savings back up with out loosing the interest money.
Pay it off now because it will save you a little bit in interest then pay back your savings what you would have paid on the loan. When it is all said and done you should be in the same place with a few extra dollars in your pocket.
I'm a believer that anytime you are able to get yourself out of more debt then do it.
True, it will hurt right now to deplete your savings to payoff the car but instead of making a monthly car payment... put that money in your savings instead and pay yourself, not the bank. Don't act like you have $350 extra monthly because of no car payment... be disciplined, put that in savings and you'll be proud of yourself later.
Debt is evil. Living debt free is the best way to go.
If your payments are $350 and you have $1000 to pay it off, you will have it paid for in July anyway. If you have an interest rate on your car loan higher than you are paid by your bank that has your money in a savings account, then pay your car off. If you are getting more from your bank, then wait to pay off your car loan.
Good luck to you and yours.
Pay off the loan. There's no benefit in having debt hanging over you, and also not paying on your loan during the summer would get your car taken away - which would probably affect your ability to find/keep further work. In my opinion, you're best off eliminating all debt and then socking away all your earnings that you can into savings to tide you over during the summer. If there are any other expenses you can get rid of now to help you save more (maybe cable tv or other things like that), do that too. Good luck!
I'm with the majority here, pay the car off. You have some time to get back most of the $1000 before you are laid off. Besides your bills will be less without the car note. You also save a bit of interest by paying it off.
Enjoy our summer.
The other S.
PS The less debt the better.
Definitely pay it off! What a great feeling that will be!
Then you save on interest, and paying the car off completely will look great on your credit too!
And then you can save money from now until your laid off and have one less bill :)
Pay it off, then you do not have to worry about it anymore and you have an extra $350 a month to go towards other things!
If you pay it off you'll be saving money on interest.
K. B
mom to 5 including triplets
Well i would have normally be one to say pay it off, and that is what I fully intended to do myself, but didn't get around to it, and luckily for me I didn't. I suddenly had two emergency situations, one cost almost 3 thousand dollars and the other cost 4 thousand. I used my spare 1000 to pay on those and thank goodness because those had higher interest than my car payment. So you just never know what can happen. I am still paying on those emergencies as well as my car payment, but my interest would be higher if I had used that money to pay off my car. So I am glad I did not. So based on my own recent experience I am changing what I normally would have advised to don't pay it off. If you will have it payed off in a few months anyway it won't save you anything on interest, but if an emergency comes up you could end up paying more interest on that if you have no money to pay on it.
First, make sure you do not have a pre payment penalty - then see if you can modify your loan so you have no payments in the summer when you do not work. If those do not work, then yes, pay off the loan - I just hate to think you are wiping out your cushion.
