Pay off car faster or build up emergency fund?

  • 🐕 I am attempting to get the site runnning as fast as possible. If you are experiencing slow page load times, please report it.

666NASTYFUCKINGFREAK666

god help you if you step on the bumblebee
True & Honest Fan
kiwifarms.net
Joined
Sep 9, 2024
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?
 
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.
 
  • Feels
Reactions: SofondaCox
I'd say get more savings, but I don't know anything about anything.
 
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.
 
  • Agree
Reactions: YoRHa No. 2 Type B
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.
 
  • Semper Fidelis
Reactions: oh no its pipkun
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.
 
  • Agree
Reactions: CEO of Gay
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.
 
  • Agree
Reactions: Gentlemen
Back