i have a few thousand dollars remaining principal on my car loan which i got at a 1.5% rate back in the days of quantitive easing. i have saved up the amount and it is earning me 4% on my savings account. i know i should stick with the loan and pay it off as slowly as the schedule allows thanks to the hilariously low rate. but there is something in me that wants to be free of this debt and pay it off right now. why is patience so hard?
4 months ago 路 馃憤 techpriest, lykso
itt: tons of great points. thx guys! 路 4 months ago
'opportunity cost' is is a thing - same situation on the truck here. If rates stay high, go slow, if rates go low, ditch the loan. 路 4 months ago
I know the feeling. I was in the same situation a while back, and I ended up just paying it off once I had only a few months of payments left. I just have a hard time trusting situations to remain as expected sometimes. 路 4 months ago
Don't pay it off. So long as you can get double in money markets, use your cash to bring income to pay mortgage interest and have it pay you too 路 4 months ago
Similar, but more extreme, story here. my family鈥檚 loan for our house and farm is through the USDA. We have an extremely low interest rate. We recently inherited money with which we could pay it all off now, but the smart thing to do is actually to buy more land and stick to our original mortgage schedule.
It鈥檚 hard to do. That feeling of being debt-free! 路 4 months ago
I say pay it off. There's nothing like that feeling of being debt free. 路 4 months ago