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.
