Moving some money around. What would you do?

[BacktoBasics]

Both of these options will cost me approx. 2k. Seriously I've been juggling this for a few weeks and I'm not sure whats better.

Pay off a loan thats 130.00 a month but would be paid off in a year from now if I did nothing.

or

Refinance my Auto loan lowering my monthing payment by 40 bucks. The refinanced length of term would be 48 months and I would earn a better rate than what I'm at now.

Basically shrink an existing loan for the long haul or completely eliminate a loan a year early. Its an older loan so paying or not paying it off isn't going to move my FICO up or down significantly in either direction but it would free up an immediate 130 a month.

[ploto]

Pay off a loan thats 130.00 a month but would be paid off in a year from now if I did nothing.

or

Refinance my Auto loan lowering my monthing payment by 40 bucks. The refinanced length of term would be 48 months and I would earn a better rate than what I'm at now.

Basically shrink an existing loan for the long haul or completely eliminate a loan a year early. Its an older loan so paying or not paying it off isn't going to move my FICO up or down significantly in either direction but it would free up an immediate 130 a month.
You could pay down your Auto loan so it would be paid off sooner. I think people finance thier cars for too long of terms.

[2centsworth]

Both of these options will cost me approx. 2k. Seriously I've been juggling this for a few weeks and I'm not sure whats better.

Pay off a loan thats 130.00 a month but would be paid off in a year from now if I did nothing.

or

Refinance my Auto loan lowering my monthing payment by 40 bucks. The refinanced length of term would be 48 months and I would earn a better rate than what I'm at now.

Basically shrink an existing loan for the long haul or completely eliminate a loan a year early. Its an older loan so paying or not paying it off isn't going to move my FICO up or down significantly in either direction but it would free up an immediate 130 a month.
pay off the loan and use the extra 130 and start applying it to the car or saving it. I would lean towards saving it.

Better than spending $40 a month and incurring extra debt with the longer term that will have you way upside down on your vehicle.

[BacktoBasics]

You could pay down your Auto loan so it would be paid off sooner. I think people finance thier cars for too long of terms.I agree. I think its likely to paid off early, I'll drop an extra 1000 in it once or twice a year around summertime but the idea behind refinancing it now is that I'd lower the rate now vs. later and have a lower payment for the months I don't drop the extra amounts to principal. I don't mind a longer note and lower payment for a majority of the months in the year as long as I'm taking larger swipes at it a few times a year. I wouldn't want to drag it out any longer than 40 or so months.

[CubanMustGo]

2cents hit the nail on the head. Pay off the small note and either apply the $130 to your car principal (which would make more of a difference in your total outlay than refinancing it) or save it.

[DannyT]

pay that shit off man...i was in the same situation a few months ago where i didnt want to wait and keep paying taxes and financial charges on the ride so I just paid it off and got that over with. Now I will be able to save up to 300 a month if I can restrain myself from buying use less junk...but you have to apply the snowball rule and pay off the smaller ones first then roll them into the bigger debts once they are paid off.

very good advice stated above....and its true

listen to AM 550 at 1PM for the Dave Ramsey show...its really REALLY good information....

[TDMVPDPOY]

pay off that shit man, so you wont have some shit on the side takn up ur finance hassles.

130 can goto world vision and sponsor me

[Cry Havoc]

If I'm correct, $130 per month will incur more interest than a $40 a month car payment, depending upon each rate. I still think paying the one off would be more beneficial. That's $130 more per month you have to save.

[desflood]

Pay off the loan and put the monthly $130 into a Roth IRA. Your age is about time to begin thinking about retirement funds.

[CavsSuperFan]

Stop doing business with the huge lending institutions like http://www.lamontbuffalo.com/images/stagecoach.jpg….They have such sophisticated spy ware on your phones & computers…They are expert at over charging the unsuspecting consumer…Loan rates, fees, selling your information, etc…Do business with small institutions like Federal Credit Unions…

That being said…Get down to you local Ford or Chevy dealersherp & get that new truck you always wanted for 0% finance for 72 months! HURRY Sale Ends Soon! :smokin

[mrsmaalox]

I'd pay off the loan. Paying down the car is a good idea too, but what's to guarantee you won't be needing (or wanting) a new car soon, so then you are back at square one. I think people change cars often enough (for various reasons) that car payments just become a part of life (for me at least).

[xrayzebra]

You belong to a credit union. If you do go talk to a counselor and
they can factor it all out for you. Debt is not bad, sometimes it
is even to your advantage. Just talk to someone who can put it
into numbers so they can crunch it......

[1369]

2cents hit the nail on the head. Pay off the small note and either apply the $130 to your car principal (which would make more of a difference in your total outlay than refinancing it) or save it.

This.

[BacktoBasics]

Ok I'll eliminate the loan and refinance the vehicle later. Thanks for the advice.

[Jimcs50]

Pay off the loan!!!!!

Saving $40/month for 12 months is $480

$90 a month for an additional 36 months is $3240.00

You would be crazy to do that....are you dealing with my uncle Guido down on Commerce St. ? :lol

Nuf said

[ploto]

Ok I'll eliminate the loan and refinance the vehicle later. Thanks for the advice.
I still would suggest using that extra $130 per month and paying down your car loan-- not only do you pay off the extra principal but each regular payment goes toward less and less interest and more and more principal as that balance lowers. So, you actually pay off more extra principal than just the $130 per month as the savings compound each month. The amount of interest you would earn on that money if you saved it instead (minus the tax you would potentially owe on it depending on where you put it) is going to be far less than the interest % you are paying on the automobile loan.

[01Snake]

Option C: Get a better job :D

[SequSpur]

Just stop paying on both of them or ask Jim for a loan.

[ashbeeigh]

Just stop paying on both of them or ask Jim for a loan.

:lol That made me laugh and I hate to admit it.

[ShoogarBear]

This should actually be a few relatively straightforward calculations using a financial calculator. What's going to make the difference is the comparitive interest rates of each loans, and then an estimate of what you think will happen to regarding inflation vs. what you rate you would make by investing or saving.

[scott]

You left off the most important peice of information to decide... the interest rate on each of these loans. You pay off the one with the highest interest rate, its that simple.