DISQUS

David · 1 year ago

While I agree in principle about paying down highest interest loans first, the "mental" satisfaction in this case of not having car loan and not having a $600 outlay of cash each month for a car, could supercede any thoughts on interest rates. If this was me, I would pay off the car with the money and put the rest towards the house. A $600 reduction in monthly costs is too much to pass up for a $70 or so savings each month on a mortgage, at least for me. Great post

WealthBoy · 1 year ago

For many, improved cash flow indeed does provide a sense of security even when it is to the detriment of net worth. I think it helps to be informed when making such decisions by realizing the long-term cost and developing a good view of the big picture. In the grand scheme of things, 20 months isn't a long time to finish paying off an auto loan and in month 21 cash flow would improve by $670 vs. $600.

marianaws · 8 months ago

i agree with "pay down your loans with the highest rates first." cause i have a good experience by doing that

Citibank credit card · 3 months ago

Paying high interest rates first can help you pay your debt wisely but still it is better to pay everything though it may be the highest nor the lowest interest rates still it will affect your credibility.

boracay island philippines · 2 months ago

I always pay personal loans on time so that I won't have problems regarding it. Now I know that I did a positive thing in paying my loans on time.