Comments on: Paying Down My Loan

By: Reflection on 2012 | When Life Gives You Lemons

Reflection on 2012 | When Life Gives You Lemons — Thu, 09 Jan 2014 02:09:55 +0000

[…] between my job, home, and school, so I bought a car. I took out a loan to buy the car, and have been paying it off at a much higher rate than the minimum payment ever […]

By: Stop With the Credit Card Debt Already | When Life Gives You Lemons

Stop With the Credit Card Debt Already | When Life Gives You Lemons — Mon, 15 Apr 2013 04:14:11 +0000

[…] it’s time to get committed to paying down your debt. You’re paying less in interest so make more of an effort to pay down that debt and get rid of […]

By: thestarvingartistcanada

thestarvingartistcanada — Mon, 08 Oct 2012 16:31:08 +0000

I’m of the same stripe as LiquidIndependance… Any money I can borrow at 5% or less is better invested in capital markets. I averaged about a 25% return for the past 4 years. 25% is a better return than a 5% savings.

By: Nicoleandmaggie

Nicoleandmaggie — Thu, 04 Oct 2012 14:45:51 +0000

A lone voice of disagreement here…

I think you should pay it off before you buy a house. You will be grateful for the additional cash flow with the unexpected expenses that come up with home ownership, it may increase your credit score to have it paid off if you’re not already maxed on that, and you’re exposing yourself to less risk in the event of an emergency having only the mortgage rather than the mortgage and a car loan.

The wedding and vacation are one-time expenses and so long as you don’t go into further debt to finance them probably won’t expose you to too much additional risk. Personally I wouldn’t put off a wedding but I might put off a vacation trip based on my debt load, retirement savings, and emergency fund size.

By: Allison @ Insomniac Lab Rat

Allison @ Insomniac Lab Rat — Sat, 29 Sep 2012 23:52:40 +0000

Let me be the millionth person to say no, I don’t think you’re crazy.

Our car loan is one of our lowest priorities. We paid off our unsubsidized student loans first (higher interest), then made extra payments to our mortgage (only slightly higher interest rate than our car, but because the balance is obviously so much higher, this is a much bigger expense). I’d also rather be saving for our trips home and funding our retirement accounts than pay the car off faster.

By: Renée (@nickelbynickel)

Renée (@nickelbynickel) — Sat, 29 Sep 2012 04:43:13 +0000

Not crazy, everyone has their own preference. I know that I would have gone crazy if I still had a carloan. I MAY consider one again in the future… if it fits in with the whole of my finances but I get really uncomfortable when i have too many payments to make on everything every month.

I’d say do what feels good for you, my sister has the exact same car btw, spiffy little thing!

By: The Asian Pear

The Asian Pear — Sat, 29 Sep 2012 01:27:07 +0000

I don’t think so. You have other priorities too in life. It’d be insane to pause the planning for other life events for one purchase.

By: Blair@LifeDollarsandSense

Blair@LifeDollarsandSense — Sat, 29 Sep 2012 00:52:06 +0000

Hi Daisy. I also drive a Honda Civic and and am working to pay it off. I have a 2.3% rate. I think I paid a bit more for a civic over other cars, however I needed a reliable ride since I travel regularly and have a long commute. For me it has not disappointed. Good luck with your pay down!

By: JW @ AllThingsFinance

JW @ AllThingsFinance — Fri, 28 Sep 2012 20:11:13 +0000

It’s great to have such a well-thought-out plan. It really puts things into perspective. I think more people should take advantage of low interest rates. Because they’re so low, I too bought a call this year at 2.45%

By: Jacob @ iheartbudgets

Jacob @ iheartbudgets — Fri, 28 Sep 2012 19:36:18 +0000

Hey, you’re not going into further debt, and you have a plan in place. I don’t think it’s crazy to not pay it down faster. It’s like asking if you should do 50 push ups or 75 push ups per day. The awesome fact is that you are doing pushups instead of eating a bag of doritos.