Announcement

Collapse
No announcement yet.

Am I hurting myself? - Car Payment

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Eric80
    replied
    It would be better if you could start saving however this is a tricky situation as you dont want to fall behind on payments - have you considered getting professional advice, say from the citizens advice bureau - they have some really good resource that you should definitely look into .

    Leave a comment:


  • maat55
    replied
    Originally posted by NetSkyBlue View Post
    That just figures... I checked my email and I just received one from the bank saying they were lowering their interest to 2% APY 10 days from now. *grumble grumble* Nothing good ever lasts.
    Are there swipe requirements on your debit card?

    BTW, I agree with Steve, you should sell the car. Prioritization of debt freedom and building an emergency fund should come before a luxury car.

    Leave a comment:


  • NetSkyBlue
    replied
    That just figures... I checked my email and I just received one from the bank saying they were lowering their interest to 2% APY 10 days from now. *grumble grumble* Nothing good ever lasts.

    Leave a comment:


  • BuckyBadger
    replied
    Originally posted by NetSkyBlue View Post
    It's West Bank "Reward Me Checking". I think it's only in Iowa. I tried to post a link, but the forum won't let me since I don't have 15 posts yet. If you're in Iowa, it's a great deal.

    I have a friend who works there who tipped me off about it several years ago, so I switched to their bank. It actually used to be 5% but they lowered it to 3% 2 or 3 years ago.
    I googled!

    https://www.westbankiowa.com/personal/checking

    I had to put in my zip code (non-Iowa) to get to this page. The requirements are pretty stringent to get the 3%, so it would be hard to just park, say, out of state emergency funds there. They require:

    Each statement cycle:

    12 signature-based debit card transactions

    One direct deposit or direct payment

    Receive eStatement

    Leave a comment:


  • NetSkyBlue
    replied
    Originally posted by edg126 View Post
    What bank do you belong to that gives 3% on checking? ING is only paying .8 on savings now, I want in on that!
    It's West Bank "Reward Me Checking". I think it's only in Iowa. I tried to post a link, but the forum won't let me since I don't have 15 posts yet. If you're in Iowa, it's a great deal.

    I have a friend who works there who tipped me off about it several years ago, so I switched to their bank. It actually used to be 5% but they lowered it to 3% 2 or 3 years ago.

    Leave a comment:


  • Gina23
    replied
    Originally posted by disneysteve View Post
    My wife got her current car (a 2000 model) in September 2002 - over 9 years ago.
    I got my current car in August 1998 - over 13 years ago.

    Some of us actually buy cars that we like and keep them until they die.
    I second that motion...

    I bought a used 2001 car in late 2002. It's still going and has plenty of life. I'll let you know when I reach the 15 year mark

    Leave a comment:


  • bjl584
    replied
    From a pure interest rate perspective ignoring everything else, then the order should be:

    1) credit card
    2) student loan
    3) car

    Leave a comment:


  • edg126
    replied
    What bank do you belong to that gives 3% on checking? ING is only paying .8 on savings now, I want in on that!

    It's $22. If you have a 20,000 car loan then $22 probably isn't a big percentage of your salary. I think it's worth doing it that way just to round it up so you won't keep having to check what the minimum dollar amount is, which I guess is what you are doing.

    Leave a comment:


  • maraba
    replied
    Originally posted by NetSkyBlue View Post
    (Note: I am currently participating in a 401(k), and will likely end up opening a Roth IRA to contribute that amount to if I change jobs to an employer that doesn't offer a 401(k)...this will probably occur near the first of the year. I don't max this out, because it would probably take me 10 years rather than 5 to save up a downpayment if I did this.)
    My advice is simple: Pay off your credit card debt first.

    Leave a comment:


  • Andrew Jackson
    replied
    Originally posted by NetSkyBlue View Post
    The reason I want to get one month's expenses saved in my account before paying off the CC is so that if something else unexpected comes up, I can pay for it, rather than paying some on the card, and then charging some on the card: when an unexpected vet bill comes up, or the vacuum breaks, etc. I just want to feel I have some cushion to prevent me from ever needing to charge these things.
    I don't see why that should be a problem. Just start paying down the card and if something bad happens you have created room on the card to charge more where as otherwise you still would have just had all that debt sitting there to begin with. The key is to get your spending under control which hopefully you have done.

    Leave a comment:


  • NetSkyBlue
    replied
    Originally posted by jpg7n16 View Post
    That's a good question. Here's another one - why would you keep money in an account earning 3% instead of paying off one that charges 11%?
    The reason I want to get one month's expenses saved in my account before paying off the CC is so that if something else unexpected comes up, I can pay for it, rather than paying some on the card, and then charging some on the card: when an unexpected vet bill comes up, or the vacuum breaks, etc. I just want to feel I have some cushion to prevent me from ever needing to charge these things.

    Leave a comment:


  • jpg7n16
    replied
    Originally posted by NetSkyBlue View Post
    But why would I pay off a 0.50% loan when I'm earning 3% in the bank?
    That's a good question. Here's another one - why would you keep money in an account earning 3% instead of paying off one that charges 11%?

    I just wanted to know if it would be significantly to my advantage to stop paying extra on the car.
    Yes it would. Paying it towards the CC instead would be 22x as effective.
    Last edited by jpg7n16; 11-12-2011, 10:22 AM.

    Leave a comment:


  • Petunia 100
    replied
    You should definately stop paying extra on a loan with a .5% interest rate. The only reason to pay extra on the car loan would be if you had enough to pay in full and just wanted to be out from under it. Send your extra $20 to your credit card instead. Once that is gone, leave your extra $20 in the bank earning 3%.

    Leave a comment:


  • disneysteve
    replied
    Originally posted by Shewillbemine View Post
    10-15 years from now you won't be driving the car you want. And that's assuming you can hold off that long. It may only take 5-7 years before you are sick of your car (again).
    My wife got her current car (a 2000 model) in September 2002 - over 9 years ago.
    I got my current car in August 1998 - over 13 years ago.

    Some of us actually buy cars that we like and keep them until they die.
    Last edited by disneysteve; 11-12-2011, 05:33 PM.

    Leave a comment:


  • NetSkyBlue
    replied
    In 21 months, I will have more than enough in the bank to pay off the car in full. But why would I pay off a 0.50% loan when I'm earning 3% in the bank?

    And I beg to differ on whether or not I will still love my car in 10-15 years. You don't know me, you don't know my tastes. I hated my previous car when my ex-husband bought it. I hated it when I inherited it in the divorce. And I still drove it until it was breaking down every couple of months and repairs were costing me more than a car payment.

    This is one issue I have no intention of budging on - and it's not what I was asking about in the first place.

    Credit card should be paid off in full in January, student loan in Feburary. I just wanted to know if it would be significantly to my advantage to stop paying extra on the car.

    Leave a comment:

Working...
X