should I pay off loan (credit cards, debt, payments, financial)

[emailvasally]

Just wondering what the financially savvy people think.
I consider myself "debt free" because I have the means to pay this off.
I have 10k that is owed for buying my new car. the interest is only 1.89%.
I have the money to pay it off if they ever change the agreement (it is on a cc) The money is making 6%. So of course originally I fought my husband and banked the money.

I am wondering with all the uncertainties whether I should keep it how it is or pay it off. Is it better to have a penny of cash available or all debt wiped clean?

[grannynancy]

I would keep the loan and the money - you are earning more than you are spending.

[TexianPatriot]

When buying something, either make the minimum payments and finance it to the hilt, or buy with cash. At less than 2% interest, I'd say just keeping making payments. Debtors will be bailed out via inflation. If you can keep your job in an inflationary/stagflationary period, you will be better served buying hard assets and paying as little as possible towards your debt.

[ChunkyMonkey]

Pay close attention to your credit card rates. I just saw a report on cnn about how credit cards are starting to jack up the rates by blaming the credit crunch.

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[emailvasally]

Originally Posted by ChunkyMonkey

Pay close attention to your credit card rates. I just saw a report on cnn about how credit cards are starting to jack up the rates by blaming the credit crunch.

Free Video - Business and personal finance news from Fortune

I checked a different cc after I read this. went from 10% to 21% Yikes!!!!!!!!
I have excellent credit too. I am so glad I am not in debt like most americans.
I will have to keep a close eye on my 1.89%.

[tony23]

Most car contracts I have seen are pretty well locked in at the interest rate stated on the contract. You might want to check over your contract to be sure they can't change the rate.

But unless they do, you're gaining a net 4% on that money. If your credit is otherwise good, then you're probably better off keeping the loan.

[emailvasally]

the "car loan" is actually on a cc with the teaser rate of 1.89%.
We have the title free and clear. Now that I know what the cc's are doing, I will have to keep a close eye on it. I guess I was just wondering how many people were still thinking like me, or if I should take the easy and safer way out and just pay it off. I really like having the cash in the bank.
'

[LeafsFan85]

"the "car loan" is actually on a cc with the teaser rate of 1.89%.

You need to find out what happen after the teaser rates expired, before it's expired.

[tony23]

Originally Posted by emailvasally

the "car loan" is actually on a cc with the teaser rate of 1.89%.

Ouch.

Figure out when the teaser rate ends, and pay it all off right before it does, then. Yes, it's nice having the money in the bank, but you're LOSING money that way - I seriously doubt that your interest rate is lower than 6% on the card. And you'll still have the card.

[Smartdaveclark]

Remember , cash is the king,