Breaking News: We’ve paid off our car loan early!
Just a couple days ago, I mentioned that we had about $3,300 left to pay on our car loan, and that we would pay it off over the next 2 months.
Well, I jumped the gun.
I was looking through our budget and saw that I could pay the credit card loan off completely right now. The loan was a low 1.99% interest, and yes, I could have earned 5.05% in my HSBC account, but darnit, I wanted that loan GONE!
We cashed out our eTrade CD late last month, and I was dragging my feet on moving the money to our savings. My logical side said “move it and earn more interest than I would save by paying off the loan”. But, my emotional side (yes, I have one), said “that car can be yours and you can get rid of that debt hanging over your head RIGHT NOW!”
It just goes to show that logic doesn’t always rule in personal finance, and sometimes you just have to get that weight off your shoulders.
So, what’s next? I’ll clue you in later. 🙂
Good for you my firend! Now is the time to get rid of your debt scale!
Don’t worry about the 5.05% vs 1.99% thing. With taxes, you are looking at something like 1.5% or something difference, so it turns out to be $50 bucks a year?
$50 is definitely worth it for the piece of mind, since it will energize you to do other money making things.
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CONGRATS! Getting rid of Credit Card debit is a great feeling.
I know that sometimes not having the debt is much more important than the growth some where else.
I currently have 2 car loans. I do enough money to pay one of them off sitting in a money market account. The reason I haven’t done it yet is because I wanted an emergency fund.
But I’m really considering paying off one of the cars just for the feeling of freedom. (At least partially, since I’ll still have one remaining)
I am going to do the same thing with one of my loans this month. I have about $400 left on it and that is about one month’s income as a student. I cashed out my little emergency funds and I am going to pay that full amount off this month. Feels good.
Congrats! I’ve paid off low interest debt before just to get rid of it. It feels so good! And when you think about it, you only would have made a few extra dollars. In my opinion, a few dollars is well worth the piece of mind of not owing that debt any longer!
You KNOW I’m loving this news! Way to go… I totally agree with your decision you made. Now, on to the next goal! Keep it up,
NCN
Congrats on the car loan! It always feels great to be able to scratch one item off of your list of debts.
I’ll be able to pay our car loan next February as well. 2 whole years before it’s due. I can’t wait!
Thanks everyone!
I should have mentioned that this was a 72 month (6 year) loan that we paid off about 3.5 years early!
When you account for the negative equity that we rolled into this loan, it was about $25,000 we paid off over 2.5 years!