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Old 07-17-2012, 11:21 AM
 
Location: Londonderry, NH
41,478 posts, read 59,521,434 times
Reputation: 24856

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Pay it off ASAP. The money you save will be yours.
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Old 07-17-2012, 11:31 AM
 
51 posts, read 52,180 times
Reputation: 10
Thank for all the replies, I apperiate it!
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Old 07-17-2012, 12:08 PM
 
4,690 posts, read 10,337,858 times
Reputation: 14882
Quote:
Originally Posted by IWannaBeFree View Post
I will not trade in, I will keep on driving until the wheels falls off! That is a good thought but I really really hate car payments....
That's how we (wife and I) do it.. but we still make "payments" to ourselves. We use the money for vacations (went to Ireland for just over 2 weeks this past October), and emergencies (I ran my thumb through a table saw 8 weeks ago, had to pay out $2500 before health insurance covered anything).

I'm just saying that once you get into the mentality of making a "payment", don't just take that money and blow it once your 11 months are up. Keep making payments to yourself. Maybe drop it from 1,000 to 800, but keep doing it and when you need wheels (cause they fell off... ), you don't have to wonder where the $$$ will come from.


FWIW, we've been 7 years without a car payment now and I can see going another 7 without any trouble.
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Old 07-17-2012, 12:37 PM
 
Location: Columbia, California
6,664 posts, read 30,498,023 times
Reputation: 5177
When you make those $1000 payments make sure the overage goes to principle. Too often loan companies will apply it to the interest first if you do not specify where to apply it.
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Old 07-17-2012, 12:41 PM
 
51 posts, read 52,180 times
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Quote:
Originally Posted by Brian_M View Post
That's how we (wife and I) do it.. but we still make "payments" to ourselves. We use the money for vacations (went to Ireland for just over 2 weeks this past October), and emergencies (I ran my thumb through a table saw 8 weeks ago, had to pay out $2500 before health insurance covered anything).

I'm just saying that once you get into the mentality of making a "payment", don't just take that money and blow it once your 11 months are up. Keep making payments to yourself. Maybe drop it from 1,000 to 800, but keep doing it and when you need wheels (cause they fell off... ), you don't have to wonder where the $$$ will come from.


FWIW, we've been 7 years without a car payment now and I can see going another 7 without any trouble.
Good idea!
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Old 07-17-2012, 12:42 PM
 
51 posts, read 52,180 times
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Quote:
Originally Posted by ferretkona View Post
When you make those $1000 payments make sure the overage goes to principle. Too often loan companies will apply it to the interest first if you do not specify where to apply it.
I will keep that in mind!
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Old 07-17-2012, 01:01 PM
 
8,402 posts, read 24,098,103 times
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Quote:
Originally Posted by PanTerra View Post
Paying it off early can only help that. That is great if you can pay it off early, by years even. A lot of people can't.
There is some point at which early payoff helps a credit rating very little. I have no idea where that point is during a payoff, but it might be worth looking in to.

The word is princiPAL, not princiPLE, as used in this thread, BTW.
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Old 07-17-2012, 01:03 PM
 
Location: Richardson, TX
8,734 posts, read 13,756,402 times
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Quote:
Originally Posted by vmaxnc View Post
There is some point at which early payoff helps a credit rating very little. I have no idea where that point is during a payoff, but it might be worth looking in to.

The word is princiPAL, not princiPLE, as used in this thread, BTW.
Thanks, sometimes the fingers go into auto. But you are smart, I am sure you got the point. I might send all my posts to you so you can proof them for me before I post them, that'd be great. I could use someone like you a lot. Way to volunteer?
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Old 07-17-2012, 01:21 PM
 
Location: California / Maryland / Cape May
1,548 posts, read 3,017,946 times
Reputation: 1242
Quote:
Originally Posted by IWannaBeFree View Post
I just got a car which is 2009 Honda Civic and the price is $15,274 and I put down $5,000 down payment my loan terms is 36 months at 8.9% APR and the monthly payment is $327.89 a month

I am going to be paying $1,000 a month instead of $327.89 a month to pay my car off in 10 months instead of 3 years to save interest you probably would think I am crazy but do you think that is a good idea or no?

My only bill is car insurance which is $60 every month and phone bill which is $50 every month so I can afford to pay $1,000 a month car payment

Thank you for your thoughts and suggestions!
I haven't read this entire thread, just the OP, but...

Pay it off asap. You'll save so much in interest.

After you pay it off, put the same amount as a car payment into savings each month. By the time you need a new car again, you won't have to finance at all. Or, if you want to finance just to up your FICO score, you'll at least have the cash sitting there to pay it off in just a few short months, vs. years. I have an 820 FICO, and that's how I got there (playing the game ).
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Old 07-17-2012, 01:25 PM
 
2,994 posts, read 5,742,792 times
Reputation: 1821
Quote:
Originally Posted by IWannaBeFree View Post
I just got a car which is 2009 Honda Civic and the price is $15,274 and I put down $5,000 down payment my loan terms is 36 months at 8.9% APR and the monthly payment is $327.89 a month

I am going to be paying $1,000 a month instead of $327.89 a month to pay my car off in 10 months instead of 3 years to save interest you probably would think I am crazy but do you think that is a good idea or no?

My only bill is car insurance which is $60 every month and phone bill which is $50 every month so I can afford to pay $1,000 a month car payment

Thank you for your thoughts and suggestions!
Yes. You are always better in paying down debt if you are able to so you can eventually be among the few that can claim they are totally debt-free plus youll save money in interest if its payed off early. This concept is especially important and valid given our very volitile American Economy which is not showing signs of definitive improvement and while our Country accrues $4,000,000,000 debt PER DAY which is going to lead to an eventual economic collapse . People who are debt free when this happens will be in a far better position than those up to their proverbial noses in debt.
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