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I have a $1800 loan @13% APR for 106$ per month. So about 18 months left to pay it off just paying minimum due. I have the $1800 in cash but the cash is my only emergency money. Should I go ahead and pay it off now or just keep paying the $106 and gain credit? I am not financially stressed.
The interest rate is pretty high. Could you pay more than the minimum and not dip into your emergency money? That way, you could pay it down faster and still build up your credit.
It's really too hard to say, given the info that you've provided. However, I would probably hang on to the cash and keep making payments. If you're paying $106/mo for 18 more months, your total cash outlay will be $1,908. If you pay the balance now, it will be $1,800. I wouldn't risk every penny of your emergency fund for $108 in savings over an 18-month period.
You may need that emergency money..hence the name.
I would suggest that if you get any "extra" money then put that towards paying it off while doing the minimum payment.
Agree with everyone else. Keep the emergency fund (increase it if possible). Try to come up with extra cash to add to the minimum payments if those interest payments bother you.
Yeah...keep the emergency fund or possibly only use a portion of it to pay on the acct.
Do not run up the credit any further. Lock it down.
If you can pay a little extra every month to help it come down a little faster.
Find a credit card with a zero percent transfer offer. Transfer the money and pay it off within the time frame required in equal payments.
I would only do that if you can get a card with such an offer from one of the prime lenders like Amex or HSBC or Bank of America, ones that can make postitive reportings to the credit agencies. The others will do nothing for you, and you'll most likely have to pay a 3% balance transfer fee.
pay it off now. Good luck getting 13% gain ANYWHERE.
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