Quote:
Originally Posted by marsupial
I am no financial person, but where are you going to earn more interest than what you are paying on the car? I'd just pay the sucker off. Rich people didn't get rich from making car payments every month.
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Rich people get rich by making their money work for them. I heard a quote by former BYU basketball stud Devin Durant after he purchased Liberty Square for a significant sum:
You're worth what you owe.
Having debt isn't always a bad thing. Your car is a liabilty even if paid for. Not having a payment is nice, but if you're not upside down on the loan that money could be better put to use elsewhere. As was pointed out money market accounts, CD's, and even most savings account offer at least 5% now. There's stocks and low minimum mutual funds as also noted that should earn more than 5%. But if you're a homeowner why not consider something like a small remodel? Something that you can enjoy while adding equity to your home.
Just some thoughts. But this is coming from a guy who refinanced a vehicle once to squeeze an extra hundred bucks a month for use though I could have paid the vehicle off. So take it for what it's worth.