tag:blogger.com,1999:blog-615490013609764120.post8698023431996790657..comments2023-10-16T09:53:51.621-04:00Comments on Single Guy Money: Car Loan Dilemma - What would you do?Money Crashershttp://www.blogger.com/profile/01458978398655534075noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-615490013609764120.post-9617927301779748912007-07-30T05:49:00.000-04:002007-07-30T05:49:00.000-04:00lowman 25 - You have a great point. Please remembe...lowman 25 - You have a great point. Please remember though, I have a rental property so I need to keep alot more cash on hand to make sure I can cover unexpected vacancies, emergency repairs, etc.<BR/><BR/>And yes, I should have added hoarding cash as one of my vices!!! I didn't even think about that one.SingleGuyMoneyhttps://www.blogger.com/profile/03525952724884778798noreply@blogger.comtag:blogger.com,1999:blog-615490013609764120.post-7051950105875030622007-07-30T02:50:00.000-04:002007-07-30T02:50:00.000-04:00You said, "if I had the amount of debt I have with...You said, "if I had the amount of debt I have with no cash, I probably would worry myself crazy". But if you reduced your cash, wouldn't you pay down your debt? Sure you'd have less cash on hand, but you'd also have less debt. <BR/><BR/>So why do it? I've yet to see a 'regular guy' like us consistently make more in their investments (especially conservative ones like moneymarket accounts) Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-615490013609764120.post-3950066990499097532007-07-26T22:29:00.000-04:002007-07-26T22:29:00.000-04:00Lowman 25 - For some crazy reason, having alot of ...Lowman 25 - For some crazy reason, having alot of cash on hand makes me feel more comfortable. Luckily, my job is pretty stable. For example, if I had the amount of debt I have with no cash, I probably would worry myself crazy. As far as home equity, I have about 10k in my primary home but i am upside down in my rental property. <BR/><BR/>The advice of my 40 yr old self giving my 30 yr old self SingleGuyMoneyhttps://www.blogger.com/profile/03525952724884778798noreply@blogger.comtag:blogger.com,1999:blog-615490013609764120.post-22247077955717032012007-07-26T22:16:00.000-04:002007-07-26T22:16:00.000-04:00Not to sound antagonistic, could you please explai...Not to sound antagonistic, could you please explain to us why you want so much cash on hand? Is your job really that unstable? Do you not have equity in your home that you could tap into in the event of an emergency? I understand that you've had problems with credit cards in the past, but it appears you've learned your lesson. It sounds as if you are putting too much emotion into your Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-615490013609764120.post-88383470584299533922007-07-26T18:31:00.000-04:002007-07-26T18:31:00.000-04:00Anonymous - The car loan is my highest rate debt a...Anonymous - The car loan is my highest rate debt at 8.43%. As far as keeping only 30 days cash, I think that would be a risk I am not willing to take. If I have a major emergency, I want to pay cash only and not use any credit. My highest rate on my credit card is 2.99% fixed for life.SingleGuyMoneyhttps://www.blogger.com/profile/03525952724884778798noreply@blogger.comtag:blogger.com,1999:blog-615490013609764120.post-24509999260267791212007-07-26T18:27:00.000-04:002007-07-26T18:27:00.000-04:00Is the car loan your highest interest rate? If it ...Is the car loan your highest interest rate? If it is, then pay it off. If it is not, you need to pay off the stuff that is frist. For example, if you have a credit card with a 12% interest rate, it needs to be paid off... work your way down the interest rate list.... Keep enough cash on hand for 30 days of living and some credit cards without a balance for emergencies. You should be set.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-615490013609764120.post-80560648884910630792007-07-25T07:10:00.000-04:002007-07-25T07:10:00.000-04:00> Patrick - That is an idea I had not considered b...> Patrick - That is an idea I had not considered before. Thanks. <BR/>>lowman25 - Thanks for your idea of reading the car loan language. I'd rather not have to rely on credit in the event of an emergency.SingleGuyMoneyhttps://www.blogger.com/profile/03525952724884778798noreply@blogger.comtag:blogger.com,1999:blog-615490013609764120.post-78471728890489145392007-07-25T01:17:00.000-04:002007-07-25T01:17:00.000-04:00Pay it off. There is a huge difference between 8....Pay it off. There is a huge difference between 8.43% (not tax deductable) and 5.05% (taxable).Davehttps://www.blogger.com/profile/13316705943683547736noreply@blogger.comtag:blogger.com,1999:blog-615490013609764120.post-87363634592847964192007-07-24T23:41:00.000-04:002007-07-24T23:41:00.000-04:001) Before paying anything off, make sure to read ...1) Before paying anything off, make sure to read the language on the car loan. Some loan agents write the loan so that the payoff amount includes the interest you would have otherwise paid if you hadn't made the lump sum payoff. For example, a five year, $50k loan at 10% would mean monthly payments of $1062.35. After 1 year, you'd owe $41,886.62 in principle. However, your payoff amount Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-615490013609764120.post-5245916282889869002007-07-24T21:18:00.000-04:002007-07-24T21:18:00.000-04:00Tough call. $35,000 is a lot of money to keep arou...Tough call. $35,000 is a lot of money to keep around as cash. It is probably a lot more than you would need as an emergency fund (3-6 months living expenses). But if you feel you 'need' to have it around, then by all means do what makes you feel comfortable. <BR/><BR/>The other option is paying off a substantial portion of it and refinancing the difference which would lower your payments. Your Anonymousnoreply@blogger.com