<< Back to all Blogs
Login or Create your own free blog
Layout:
Home > Hmm, Part 1

Hmm, Part 1

January 19th, 2016 at 12:34 am

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.

Posted in Uncategorized | 11 Comments »

11 Responses to “Hmm, Part 1”

  1. creditcardfree Says:
    January 19th, 2016 at 12:47 am 1453164433
    1453164433

    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:
    January 19th, 2016 at 01:13 am 1453165991
    1453165991

    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:
    January 19th, 2016 at 01:38 am 1453167486
    1453167486

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

  4. Petunia 100 Says:
    January 19th, 2016 at 01:41 am 1453167680
    1453167680

    Lol. Big Grin

  5. crazyliblady Says:
    January 19th, 2016 at 01:43 am 1453167784
    1453167784

    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:
    January 19th, 2016 at 01:57 am 1453168623
    1453168623

    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:
    January 19th, 2016 at 02:01 am 1453168904
    1453168904

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

  8. creditcardfree Says:
    January 19th, 2016 at 02:17 am 1453169824
    1453169824

    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:
    January 19th, 2016 at 02:26 am 1453170394
    1453170394

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

  10. VS_ozgirl Says:
    January 19th, 2016 at 10:54 am 1453200899
    1453200899

    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:
    January 19th, 2016 at 01:55 pm 1453211732
    1453211732

    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!

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]