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!

6 Responses to “WWYD? Loan Payoff”

  1. Petunia 100 Says:

    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:

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

  3. starfishy Says:

    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:

    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:

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

  6. rob62521 Says:

    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.

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