I have 5 thousand dollars saved and owe 4650 on my car. should i pay off my car with that money? i have not used it in about a year and its only gaining .90% interest while the loan is at 3.9%. is it wise to have a nest egg and just eat the interest on the loan or pay it off and be done with it?
Answers (1)
At 3.9% you are paying 181.35 per year for nothing. If you lose your job and miss a payment, you also lose your car. Never buy a car with payments.
Now about that money in the bank. Inflation is eating the value of the money at some rate, depending on who does the estimating, but certainly more than 3.9%. It is prudent to pay off that loan and put all future savings into silver ingots which are not subject to inflation. Go to www.gold-eagle.com and read the archives to learn a few things.