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Hmm, Part 1

January 18th, 2016 at 04:34 pm

The balance on my car loan (without accrued interest since 12/20/15) is 9,060.13.

The balance in my savings account is 11,508.82.

A difference of 2,448.69.

Hmm.

11 Responses to “Hmm, Part 1”

  1. creditcardfree Says:

    Do you have other savings? How much interest are you actually paying on the car each month? Some things to think about...

  2. Petunia 100 Says:

    No other cash savings. (OK, I have $7.75 in my credit union). At the end of every month, I draw my checking account down to $500. I send excess to the credit card I use for bills, so that I end up paying more than the balance on the statement date. So there is a bit extra in checking, but not much.

    Monthly interest on the car loan is under $30 per month now.

  3. MonkeyMama Says:

    I feel like I should wait for Part II. Big Grin

  4. Petunia 100 Says:

    Lol. Big Grin

  5. crazyliblady Says:

    Knowing that there is a part 2 and maybe other parts to this discussion, I am unsure how to respond. However, that being said with this information all by itself, I would consider taking a portion out of the savings to pay down the car. Or, an alternative strategy could be to do the same with whatever tax refund you get. But I guess we should wait for further information, right?

  6. Petunia 100 Says:

    Oh, there's no big secret. I'm just going to keep looking at those two numbers and pondering until I feel comfortable with the gap. When it gets large enough, I'm going to pay off the car and be done with it. I'm looking forward to that day. Smile

  7. AnotherReader Says:

    Part 2: The Deed is Done, The Car Loan is Dead!

  8. creditcardfree Says:

    I don't think I'd be comfortable with that small amount of savings...not yet, anyway. But you will know when it is right for you. It's nice to think it could be paid if needed!

  9. snafu Says:

    Another possibility, pay down car loan by $2,500. pay down more when tax refund hits.

  10. VS_ozgirl Says:

    Yes I don't know how long it took you to build up your savings? And if you repay the loan how long it will take you to rebuild the EF? Personally I'd pay some but not all.

  11. ThriftoRama Says:

    I have a math formula for this kind of problem. How much is the car payment, and how long would it take you to rebuild savings to this level IF you paid off the car and put the monthly payment into savings? Once you have that timeline, are you comfortable living with slimmer savings for that amount of time?

    We're doing that math now deciding whether or not to pay off the mortgage. Of course, we are waiting to finish the taxes to see if we're getting a refund, and how much, and what the balance might be. But you get the idea!

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