Car Payments
I found out about 1/2 a month ago that I have VERY FEW car payments to left to pay (about 4 to be "exact"). "What does this mean?" I asked myself (as you might just be doing now)... Well, I was talking to Mom when this whole thing came up and she informed me it means that GMAC will have to hand over the title to the car..... "And..?" I said -
( Read more... )
Kate is right that the fastest way out of debt is to apply that extra $280/mo. or however much it is towards your highest interest rate loan. But yeah, if you really need some extra spending cash every month, then go for it, but apply as much of that money as possible towards your highest APR loan, which is probably some credit card.
Not that you asked, but the choice to make payments now, as much as you can, versus saving up and paying off loans in chunks comes down to an interest calculation. Almost definitely, you'll lose more money to accumulating loan interest than you'll gain from your dollars in a savings account with it's tiny interest rate. It's nice to have that money in the bank, but you'll still have the debt.
I admit there can be other non-financial factors involved here, like the joy of paying off an entire debt in one payment, but you'll most likely be saving hundreds of dollars paying it off in pieces. I hope I didn't misinterpret your plans. Just trying to give helpful advice.
Reply
Leave a comment