I have $25,000 saved up in money market accounts and my car loan is $436 for an 05 BMW 5 series. My rate is 4.99% and I have excellent credit. I still owe 21k on the car and I also rent a condo and have 2 kids and with a decent job. What do you honestly think would make more sense… pay the car off now? I feel like I am saving and it’s going to waste.
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sell your car and get something cheaper and pay in full. Having debt means risk.
If you lose your job your debt is still there and if you don’t pay they repo sell the car and you pay what the difference of what they get from the sell and what you owe.
If you lose your job and have no car payments, wouldn’t that be less stress.
You have done an excellent job, with this current economic situation it is good to have a savings account
If you pay off your car you are left with $4000.00.
You don’t have 6 to 8 months of living expense in the bank, if you lose your job the next day.
Continue to pay on the car even add $50 to $75 extra on the payment you will be surprise how much it helps
The only thing I would do with that money is maybe move $10,000 to a 6 to 12 month cd to gain a better rate of interest.
Move $1000.00 to an emergency fund and leave the rest in the money market account, best to have touch money and non touch money
Continue doing what you are doing with your savings your doing an excellent job..
Keep up the good work..
The best thing is to leave at least $1k in your savings and pay off your car. If you want more bang for your buck then get a cheaper car and sell your account to someone els. If I were you I would pay off the car, in this economy one cannot afford to be without transportation, if you see yourself with a job then your vehicle could get repo and you need this to work and get your kids around.
I would continue making monthly payments on the car and keep your savings, just in case your job gets in trouble. In these times, I would rather have some secure savings on hand. If all else fails,you might need to sell your car and get a cheaper one.