Re: Advise on finance question

Since neitherj will recast thwe remaining balance (they will both expect the same full payments until the loan balance it paid in full), I'd give the money to the auto loan.

Personally, I'd throw the money at either my savings account or my credit card(s).

I don't see much advantage in burying money in the equity in my house because if I want the equity out of it for any reason, I have to qualify for a new loan. There is nothing "wrong" with having money buried in your house, I see no point in stashing cash there. Stash your cash in a more liquid location for access if something arises that is not foreseen at this time.

If you are not planning to keep the car until it completely falls apart -- most people keep a car something like 5 years on average, and lots of people keep a car less than that -- I see no point in throwing extra cash in that direction either. Driving a car that is paid for is always a good feeling, but if you are the sort that trades a car as soon as the last payment is made, then throwing your extra cash at a car loan might not be the best thing.

For these two reasons, I'd stash the extra cash in my savings account, or in my credit card balance. Having said that, my credit card balance is zero so perhaps my outlook is a bit skewwed.

Reply to
Jeff Strickland
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Good idea, that of paying down or paying off the credit card first. That interest rate, if you carry a balance, is a helluva lot higher than the mortgage or the car loan. (My credit card balance is zero, and has been for many years. Best to pay it off monthly and avoid any interest charges if you can!) Interest on credit cards is horrendous, and can start you on a slippery slope downhill until you're mired in debt. It's a wonderful feeling to get the mortgage paid off, car and other loans paid off, and get some money in the bank. You'll sleep easier and your marriage will improve, trust me. and when you start lending out your money to banks etc in the form of CDs or other interest bearing accounts, you've gotten on the right side of the interest curve. Why work for your money when your money should be working for you!

Reply to
mack

Why work for your money when your money should be working for you!

If I could just get my money to go along with that plan ...

Reply to
Jeff Strickland

Well, they say money talks, but to most of us, all it ever says is "Goodbye" !

Reply to
mack

Do you get a big income tax rebate check every year?

mike

Reply to
Mike Hunter

Rebate! They still give those out? I haven't gotten one of those for years ...

Reply to
Jeff Strickland

Good tax planning means small or NO refunds. Large rebates mean POOR tax planning, unless, of course, you experienced unplanned for major medical expenses.

Reply to
sharx35

Precisely. Why people are so willing to lend money to the federal treasury for a year, at no interest, always seemed strange to me. ;)

mike hunt

Reply to
Mike Hunter

Right On! If I ever got a refund of unwarranted tax payments from IRS, I'd feel like a fool. I'd much sooner get a small additional bill for unpaid taxes, knowing that it was a small loan from the government, rather than knowing that I'd lent the government some money interest -free during the prior year.

Reply to
mack

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