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Home of the Whopper
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Pay off a loan?
Refinanced my truck a few years ago to payoff my retirement cabin lot.
Still owe just under $10k on the truck at around 2.5% interest. Not sure what my monthly payment is, but I pay $1k every month. So it will be paid off by the end of the year. Thinking to just pay it off to get it over with, but at 2.5% it is almost free money. Quick math says the interest is *only* $20 per month. But $10k in the bank isn't making $20 per month! I really wouldn't miss the $10k and do not need to buy anything else with it. So what do you smart fellers think?
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1968 912 coupe 1971 911E Targa rustbucket 1972 914 1.7 1987 924S |
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05-09-2023, 07:17 AM
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What?
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Buy a CD.
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________________________________________ Eric Hahl 85 911 to 73RS backdate, a.k.a. "Gretchen" (SOLD) 2015 981 Cayman S (Sold) 23 Outback Wilderness & 23 BMW R1250GS |
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05-09-2023, 07:20 AM
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Registered
Join Date: May 2018
Posts: 4,033
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Either set up a CD ladder or buy an I Bond.
Low rate currently compared to this time last year but saving the interest on the loan plus the earnings from the I bond will put a few hundred in your pocket. Sent from my iPhone using Tapatalk |
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05-09-2023, 07:26 AM
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?
Join Date: Apr 2002
Posts: 30,430
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I don't chase pennies or $10 bills even if the "numbers" are right....
Just pay off yer dang truck 
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05-09-2023, 07:29 AM
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What?!?!
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Just pay it off. Quit playing unnecessary games.
Life is messy enough and you don't need any ankle-biting admin crap. I'm sure folks with waaay more "I like playing with debt" antics will tell me how misguided I am, but so be it.
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running shoes, couple tools, fishing pole 1996 Subaru Legacy Outback AWD, 5speed 2002 Subaru Impreza WRX, 5speed 2014 Tundra SR5, 4x4 1964 Land Rover SII A 109 - sold this albatross |
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05-09-2023, 07:31 AM
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You do not have permissi
Join Date: Aug 2001
Location: midwest
Posts: 39,832
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It's not deductible. Pay it off and get another free dinner on the 1st of every month.
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Meanwhile other things are still happening. Last edited by john70t; 05-09-2023 at 07:48 AM.. |
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05-09-2023, 07:40 AM
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Registered
Join Date: May 2003
Location: Woodlands TX
Posts: 3,940
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Quote:
As a counter point you can get pretty close to a guaranteed 5% on many accounts these days. Others will know the details better but at least high 4% range on cash equivalent accounts I think
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84 930 07 Exige S |
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05-09-2023, 07:43 AM
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Banned
Join Date: Feb 2008
Posts: 18,646
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I did the same last year. Mine was 3% which was not much. I ballooned the payment and haven't looked back. I hate payments.
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05-09-2023, 07:46 AM
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My car loan is 1.99% and I'm probably going to knock it out next week.
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2022 BMW 530i 2021 MB GLA250 2020 BMW R1250GS |
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05-09-2023, 07:55 AM
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Counterclockwise?
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I hate having debt and hate even more giving the bank my money.
Pay it off.
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Rod 1986 Carrera 2001 996TT A bunch of stuff with spark plugs |
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05-09-2023, 08:10 AM
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Join Date: Apr 2002
Posts: 30,430
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Quote:
In fact... if you wanna loan me money .... it's gonna cost ya ... quite a bit too .
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05-09-2023, 08:40 AM
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MAGA
Join Date: May 2004
Posts: 10,769
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I personally would pay it off. Our house was the last thing I ever owed money on and we paid it off early probably 15 years ago. I have never had a car payment in my life and have always driven used cars. I can count on one hand how many times I have paid for professional car repair. IOW, I hate owning anyone money and at least for me, there is great satisfaction in being debt free even if it means living in a 60 year old house and driving used cars and toys.
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German autos: '79 911 SC, '87 951, '03 330i, '08 Cayenne, '13 Cayenne 0% Liberal Men do not quit playing because they get old.... They get old because they quit playing. |
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05-09-2023, 08:45 AM
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Almost Banned Once
Join Date: Feb 2009
Location: Adelaide South Australia
Posts: 38,318
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I'd pay it off but is there a penalty for clearing it early?
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- Peter |
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05-09-2023, 01:45 PM
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Join Date: Aug 2014
Posts: 401
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Lower your systemic risks - pay off your liens. Hold clear title.
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05-09-2023, 08:19 PM
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I see you
Join Date: Nov 2002
Location: NJ
Posts: 29,883
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Payoff the truck. Then keep making payments to yourself in the form of T bills.
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Si non potes inimicum tuum vincere, habeas eum amicum and ride a big blue trike. "'Bipartisan' usually means that a larger-than-usual deception is being carried out." |
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05-10-2023, 04:22 AM
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Location: Galt's Gulch
Join Date: Jul 2019
Posts: 4,891
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 Throw away pennies and dollars are soon to follow |
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05-11-2023, 12:25 AM
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Join Date: Apr 2002
Posts: 30,430
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Quote:
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05-11-2023, 03:26 AM
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Home of the Whopper
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This was a tough one for me, a lot tougher than it should have been.
I am in the position I am in now because I always worried about the pennies. Now I do not have to worry about them, but still do. So I compromised... I paid half! So still owe just under $5k. Then next month I will pay half again, which will leave 2500. Then I will decide to pay off or pay half again. Definitely over thinking it, but lots of thinking has worked for me so far!
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1968 912 coupe 1971 911E Targa rustbucket 1972 914 1.7 1987 924S |
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05-11-2023, 03:48 AM
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Join Date: Apr 2002
Posts: 30,430
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^^^^ I always worried about the dollars and pi$$ed away the pennies
.Most folks on this board have figured out what works for them and appropriate life balances imo .... and yet we are all different. |
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05-11-2023, 03:54 AM
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Registered
Join Date: Jul 2004
Location: Maryland
Posts: 31,427
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Quote:
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1996 FJ80. |
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05-11-2023, 05:00 AM
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Olive
The Turtle
Ruby
Brownie
Gretchen
Only Porsche
Only bike
