Patrick is absolutely correct. I missed the first post, and will
probably receive a good hot flaming for this, but since I'm a
financial planner I had to add my $0.02. First rule of good sound
planning is pay off ALL non deductible debt - highest interest
rates first. It isn't doing you any good... it only causes
stress. As far as just putting it in the bank... Most times I see
people doing that it just disappears and the debt is still there.
Ryan K
'99 R/T RC
Patrick and Kelly Engram wrote:
>
> "We owe approx $11,500 on it with payments of $483.00 / mo. We have
>
> about 2 -1/2 years
> and it will be paid off. Should we just pay it off now with the extra
> cash or put the extra $$ in the bank, and if we
> can't make a payment, draw it of savings.? Or pay it off now? This is
> our
> 1st experience with this sort
> of situation. We really love the truck, but we know that it is
> depreciating daily.
> What would be our wisest move? Any answer if very much appreciated?"
>
> -My suggestion on your wisest move would have to do with a few things.
> Examine your financial picture and take the money and pay off the
> highest interest rate loan/credit card you have. Keep applying until
> you run out of money or pay everything off. You are now making the most
> of your equity from your house and minimizing future interest payments.
> If you do not have any other loans outstanding other than the truck,
> than you could pay the truck off in full, or put the money into cd's
> that mature 30/60/90/120 etc days in the future. CD's earn higher
> interest than your savings account, and they keep you from dipping into
> your account. However, if you want to sell the truck and need some of
> that money to pay it off, you're SOL.
> My 2 cents-
> Patrick
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