I have two debts. I owe for a car and a Home Equity loan.
Normally I pay extra on each payment.
My emergency fund is very small. I'm wondering if it would make more sense to make the regular payments instead of paying extra principal? I would take the extra money I had been paying on debt and shift it to the emergency fund.
Details:
Car loan = $4,014 @ .9% interest
Home Loan = $16,041 @ 1.99% interest
Emergency fund = $3,440 I have this in a money market @ .85% interest
Normally I pay extra on each payment.
My emergency fund is very small. I'm wondering if it would make more sense to make the regular payments instead of paying extra principal? I would take the extra money I had been paying on debt and shift it to the emergency fund.
Details:
Car loan = $4,014 @ .9% interest
Home Loan = $16,041 @ 1.99% interest
Emergency fund = $3,440 I have this in a money market @ .85% interest
Comment