Should I pay off my car?

by hedy on November 26, 2008

With my new job, I’m reassesing my budget.  As a result, paying off my car is back on the table.  I have the money to pay it off, so the arguement goes something like this:

Pros

  • Car payment per month goes back into the budget-I know sometimes that “extra” money gets eaten up, but I’ve done a good job of reallocating my second student loan payment.
  • The interest rate on my savings account is not exactly going up.
  •  I’d be reducing debt-not a bad thing in the current economic climate

Cons

  • I’d be losing a chunk of my savings, although I’d still have a good amount in savings.
  • I’d lose the possible bonus of having the revolving payments on my credit report.
  • I’m not that far from my current payoff date goal of September 09.
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