<< Back to all Blogs
Login or Create your own free blog
Layout:
Home > WWYD? Loan Payoff

WWYD? Loan Payoff

December 16th, 2020 at 09:09 pm

Long story short I have $1,100 left on the 0% interest medical loan before I am debt free. (besides mortgage)

My stretch goal was to pay it off this year but it looks like I am going to be about $800 short. I have over $8,000 in savings to regrade our yard and install our new water heater. Cost estimate for that is $6,000ish, and I won't need to pull it for at least two more months, but I also know projects always seem to cost more than expected. I'm itching to borrow the $800 from there and pay off the loan this month. I would then use the next couple months to build back up my buffer. Any logical reason againist that or should I just pull the trigger? 

I am SUPER excited to be able to save money every month instead of putting a sizable chunk towards a loan payment!

Posted in Debt | 6 Comments »

6 Responses to “WWYD? Loan Payoff”

  1. Petunia 100 Says:
    December 16th, 2020 at 10:18 pm 1608157127
    1608157127

    If it will make you happy to pay off the loan, then call it an early Christmas present to yourself and just be done with it. Happy holidays to you and your family. Smile

  2. terri77 Says:
    December 17th, 2020 at 03:41 am 1608176506
    1608176506

    I would pay off the loan. You still have time to build back your savings.

  3. starfishy Says:
    December 17th, 2020 at 05:58 am 1608184705
    1608184705

    For me, since the loan is 0% interest, I would keep paying it off in increments because I wouldn't want to diminish my savings level by a big chunk and the loan would be gone soon enough. Either way, congrats on having it paid off soon!

  4. MonkeyMama Says:
    December 17th, 2020 at 02:30 pm 1608215441
    1608215441

    I agree with Starfishy. I am personally extremely debt adverse. But... If I had gone through the hassle of securing a 0% loan, I wouldn't see the point in rushing to pay it off. It's just moving money around, it doesn't change the bottom line. If you don't know how much the regrade/heater will cost, I'd keep the loan until that sorts out. If you move cash to pay off a loan, it doesn't change your net worth or really change anything (which is why I say it's just moving money around).

    I don't expect it makes much difference whatever you decide. Congrats on being so close!

  5. LuckyRobin Says:
    December 18th, 2020 at 09:05 am 1608282341
    1608282341

    At 0%, logically, no. But emotionally, I would really want to.

  6. rob62521 Says:
    December 18th, 2020 at 08:58 pm 1608325095
    1608325095

    I would pay off the loan and be diligent about finding ways to replace the money. Even with 0% interest being charge, knowing you paid if off would sure be nice, I'm sure.

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]