Payoff Bike???
Banned
Joined: Sep 2009
Posts: 7,580
Likes: 7
From: The Internet (& Dyer, Indiana)
Look at how much of each payment goes towards interest.
That is a good chunk of savings that you won't have to pay any more (if you pay it off now). The amount of interest savings is what you need to focus on. Then make your decision.
That is a good chunk of savings that you won't have to pay any more (if you pay it off now). The amount of interest savings is what you need to focus on. Then make your decision.
Road Warrior
Joined: Feb 2009
Posts: 1,391
Likes: 2
Pay it off 2 payments at a time, making sure the 2nd payment goes to principal. You will actually pay it off in slightly less than 10 months, as your interest payment will decrease faster as you pay it down. It will screw with the lender, and expect them to hassle you but it will save you considerable money.
Seasoned HDF Member
Joined: Jun 2008
Posts: 5,478
Likes: 184
From: Mount Airy, MD
I vote for paying it off and putting that money each month back in your savings.
Stellar HDF Member
Joined: Mar 2007
Posts: 2,034
Likes: 45
From: Michigan
Depending on the interest rate if its high enuff id pay it off but then there is the economy.. Its scary out there and jobs are being lost daily still. Im lucky my bike was bought with cash and I payed off my house a couple weeks before that . Now I dont have a job but I only have 1 payment on the wifes car.. If you can do it and your secure in your work place then id go for it.. You cant deduct the interest at the end of the year.
Even Susie Orman would recommend that you keep your emergency fund intact. Cash is King right now. Make the double payments, second being to principal, and keep the cash. Maybe your job is secure. A lot of people thought their jobs were secure. Never know what the future will bring.
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Joe Kucinski
Seasoned HDF Member
Joined: Oct 2008
Posts: 7,649
Likes: 4,889
From: Missouri City,TX
Ditto...not a good idea to take out your savngs in case of an unexpected emergency.
Road Warrior
Joined: Sep 2009
Posts: 1,594
Likes: 5
From: warner robins, ga
my folks always told me to keep enough money in an "emergency account" to uphold your current standard of living for two months, so that would be my first priority.
since i/we dont know your monetary situation or how volatile your life is (e.g., job security, bills), it's hard to say definitively do this or do that. my personal opinion is that owing interest sucks, so if it were me, i would pay that sucker off. but if you cant comfortably do that, i would say go with the advice some other people have offered: double payments. you still owe less interest and you dont really have to sacrifice much comfort in the short term. either way, good luck.
since i/we dont know your monetary situation or how volatile your life is (e.g., job security, bills), it's hard to say definitively do this or do that. my personal opinion is that owing interest sucks, so if it were me, i would pay that sucker off. but if you cant comfortably do that, i would say go with the advice some other people have offered: double payments. you still owe less interest and you dont really have to sacrifice much comfort in the short term. either way, good luck.