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?

Buy a CD.

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.


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I don't chase pennies or $10 bills even if the "numbers" are right....

Just pay off yer dang truck :D

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.

It's not deductible. Pay it off and get another free dinner on the 1st of every month.

no argument from me I subscribe to that newsletter as well


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

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.

My car loan is 1.99% and I'm probably going to knock it out next week.

I hate having debt and hate even more giving the bank my money.
Pay it off.

Same here ... I'd even pay off an interest free loan ... I just don't like owing.

In fact... if you wanna loan me money .... it's gonna cost ya ... quite a bit too :D.

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.

I'd pay it off but is there a penalty for clearing it early?

Lower your systemic risks - pay off your liens. Hold clear title.

Payoff the truck. Then keep making payments to yourself in the form of T bills.

http://forums.pelicanparts.com/uploa...1683793319.jpg

Throw away pennies and dollars are soon to follow

Nope .... makes for a good bumper sticker, but just doesn't apply to me .... nor BK either imo.

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!

^^^^ I always worried about the dollars and pi$$ed away the pennies :D.

Most folks on this board have figured out what works for them and appropriate life balances imo .... and yet we are all different.

I like that sentiment.