Pay off car faster or build up emergency fund?

[666NASTYFUCKINGFREAK666]

I am going to college soon on the GI bill, and I will be allotted $1077 a month for housing; however I already have a job so I can afford everything.

I have a car payment of $360 I started about 5 months ago, total $21k.

I have a $7500 savings account that I want to get up to $25k before I feel safe, but I'm not sure which route is better. Any ideas?

 

[SofondaCox]

Pay off car faster. Get out of debt.

 

[666NASTYFUCKINGFREAK666]

Pay off car faster. Get out of debt.

Shame, but I figured. Desperately want insurance incase the worst happens but having an extra $360 per month in cashflow will be nice, and by the time I pay off the car (16-18 months) I'd have $25k anyway I think.

 

[Testacles Maximus]

GI bill

Thank you for your service.

But yeah, I'd pay off the car first.

 

[gagabobo1997]

put the 7.5k on black and if it hits let it ride one more time then you can pay off the car AND have an emergency fund.

 

[Chongqing]

I'd say get more savings, but I don't know anything about anything.

 

[Daddy's Little Kitten]

I'd say save.

 

[oh no its pipkun]

why not pay 720 on the car note and save the rest? you'll pay off the car in 2.5 years and get that savings up. the thing with cars is there's no telling you wont trade that shit in later down the line. or if you got gap and it gets totaled. a car isnt a house.

 

[Rungle]

Dont accumulate debt.

 

[NoReturn]

Step 0. Little emergency fund (you've got already)
Step 1. Pay off debt
Step 2. Big emergency fund

 

[skol]

Debtmaxx

 

[Pelican Bones]

What's the rate on the car?

 

[CEO of Gay]

why not pay 720 on the car note and save the rest? you'll pay off the car in 2.5 years

Actually, this isn't a bad idea.

Most of the times I have dealt with car loans, student loans, and the like, when I paid extra over the minimum payment, the result was that my next month's payment was reduced by the extra amount. It was effectively counted as prepayments against the later payments due. After keeping this up for a while, I was able to skip a payment here and there, and still payed off the car early.

Sit down with your car loan agreement, a spreadsheet and crunch some numbers. This doesn't have to be a binary decision between increasing your savings and paying off the car early. You can do both. Obviously, focusing solely on one or the other will get it done faster, but there's probably a balance between the two that will satisfy.

 

[The Penguin]

If you already have nearly 10k in your savings then I would focus more on the car payment. Ideally you don't want any debt, the sooner you get out of it the better

 

[MrTroll]

1077 is almost exactly 3 times your current car payment. Get rid of your lame piece of shit car and buy one that is 3 times as nice, duh.

 

[TATE MOOOOOOOOOOOOOOODE!!]

I am going to college soon on the GI bill, and I will be allotted $1077

Only $1077???

Is this the old school bill or Post 9/11?

 

[Shroom King]

The one advantage to paying off your car is that you will no longer be required to have full insurance on the vehicle by the bank, meaning you will have the option to choose a cheaper insurance policy.

 

[jeff7989]

I am going to college soon on the GI bill,

V6 Camaro?

 

[666NASTYFUCKINGFREAK666]

Only $1077???

Is this the old school bill or Post 9/11?

Post 9/11; this is the BAH allotment

 

[TheRedChair]

My Suggestion.
1. Keep your 7500K DO.... NOT.... TOUCH.... PUT IN SOMETHING SAFE.

2. ADD more money to pay off your car loan quicker.

3. Start hustling more.

I did this with my wife when her credit was fucked up. $200 per month was her auto loan. Told her to add +100 dollars per month to make it $300 per month. Not only this was done a few years earlier it also get her credit rating up to 750+

Sure I could have paid it off however my wife would not have learned her lesson about her credit rating.