What's up everyone. We are doing a contest with T.I. and we are giving away $1200 a day for the next 10 days. Just wanted to give you all a heads up.
https://www.allhiphop.com/ti

Which option makes more financial sense?

BIGG WILL
BIGG WILL Members Posts: 2,611 ✭✭✭✭✭
edited July 2016 in For The Grown & Sexy
I have two loans I'm paying on and I was moving towards getting them paid in full by the end of 2017 (paying extra on car loan). Now, I just received a lil over $3000 that I wasn't expecting, so I figure I can do something with it.

My 1st Loan is against a 401k type of Account and I owe $4800 on it.

The Monthly payment is $109 a month w/ about $4 going to interest and a yearly $50 Loan Fee. The Payment is taken from my checkings account automatically, so I never really miss the money.

My other loan is a Car loan which I owe about $14000 on w/ a payment of $400 a Month with about $35 going to interest.

Both loans have over 36 Months left over the life of the loan.

Paying off the Nationwide Loan doesn't benefit me to much now (and doesn't hurt my pockets that much), but I will be earning a few extra dollars per Quarter because my balance will be higher.

Paying off my car loan eases up $400 a month, but hurts my savings short term.

Which payoff makes more sense?

Which option makes more financial sense? 19 votes

Pay off Nationwide Loan
36%
LPastTheNeoShellYoung Stefonetoughmiracleshit_happenszzombieBeefer77 7 votes
Pay off Car Loan
42%
babelipsssdallas' 4 evaKINGECMr.LVKoltrainBigBallsNoWorriesgdatruth2.0Bussy_Getta 8 votes
Keep doing what im doing.
21%
blakfyahkingBlack Boy KingKing EraunoAZTG 4 votes

Comments

  • Cinco
    Cinco Real Nigga Minerals Guests, Members, Writer, Content Producer Posts: 5,097 ✭✭✭✭✭
    You mentioned your savings; hows that looking, u should have some months expenses stacked up for if something happens.
    Seeing that u took out the 401k loan unless it was to purchase property,I'd say build your savings up.
    If that's not the case I'd use the cash to pay down the principal on the highest interest (car loan)
  • babelipsss
    babelipsss Members Posts: 2,517 ✭✭✭✭✭
    Pay off Car Loan
    I would pay on the car. A car depreciates in value, paying it off faster kinda keeps it even.
  • Koltrain
    Koltrain Mr. MOMembers Posts: 4,286 ✭✭✭✭✭
    Pay off Car Loan
    Whats the interest rate on the car loan?

    From the information given, it looks like paying down the car would save you the most long term.
  • Koltrain
    Koltrain Mr. MOMembers Posts: 4,286 ✭✭✭✭✭
    Pay off Car Loan
    If you have a high interest rate on the car and good credit, then it might be worth looking into refinancing your auto loan.

    Speaking hypothetically.......refinancing your car may give you a new loan that'll probably be for 60 months. Its longer than your current term, but it would lower your payment and interest rate.

    Say they give you a loan with a payment of $325 monthly over 60 months.... as long as there is no prepayment penalty, you could still pay the $400 you paying now, with the additional $75 going towards interest. Use that $3000 down on your new loan and you'd really be saving a lot.

  • Idiopathic Joker
    Idiopathic Joker PISTOL GRIP PUMP IN MY LAP AT ALL TIMES Working On My LowriderMembers, Moderators Posts: 45,691 Regulator
    Do whatever you want
  • shit_happens
    shit_happens Members Posts: 4
    Pay off Nationwide Loan
    The market is bananas right now. In July I made more than I did in all of 2016. Every extra dime you have should pay off your 401k loan first. You are leaving long term growth on the table. You could be getting a 5 - 10% return right now. Pay 2000 - 2500 on your 401k and put the rest in savings.
  • BIGG WILL
    BIGG WILL Members Posts: 2,611 ✭✭✭✭✭
    Cinco wrote: »
    You mentioned your savings; hows that looking, u should have some months expenses stacked up for if something happens.
    Seeing that u took out the 401k loan unless it was to purchase property,I'd say build your savings up.
    If that's not the case I'd use the cash to pay down the principal on the highest interest (car loan)

    I have 19K in my E-Fund and 8K in a 2nd savings Acc. I would like to get the car loan out of the way, but I don't want to dip to much into my E-Fund.
  • BIGG WILL
    BIGG WILL Members Posts: 2,611 ✭✭✭✭✭
    The market is bananas right now. In July I made more than I did in all of 2016. Every extra dime you have should pay off your 401k loan first. You are leaving long term growth on the table. You could be getting a 5 - 10% return right now. Pay 2000 - 2500 on your 401k and put the rest in savings.

    Yea, man...July is crazy right now. I want to cash in on the market right now.

  • T. Sanford
    T. Sanford Trill Doggy Dogg (Legion Of Trill) Guests, Members, Writer, Content Producer Posts: 25,291 ✭✭✭✭✭
    This thread gave me idea

    @Sion yo fam, I gotta pm you about something
  • BIGG WILL
    BIGG WILL Members Posts: 2,611 ✭✭✭✭✭
    T. Sanford wrote: »
    This thread gave me idea

    @Sion yo fam, I gotta pm you about something


    Post up!

  • zzombie
    zzombie Members Posts: 11,280 ✭✭✭✭✭
    Pay off Nationwide Loan
    You should never have got a car that you have to pay off in the first place.
  • King Erauno
    King Erauno Members Posts: 6,754 ✭✭✭✭✭
    Keep doing what im doing.
    save half that $3k in savings.. invest the other 1500. since you said both of those loans arent really hurting your pockets
  • blakfyahking
    blakfyahking The IC's Resident Father Figure Members Posts: 15,785 ✭✭✭✭✭
    Keep doing what im doing.
    BIGG WILL wrote: »
    Cinco wrote: »
    You mentioned your savings; hows that looking, u should have some months expenses stacked up for if something happens.
    Seeing that u took out the 401k loan unless it was to purchase property,I'd say build your savings up.
    If that's not the case I'd use the cash to pay down the principal on the highest interest (car loan)

    I have 19K in my E-Fund and 8K in a 2nd savings Acc. I would like to get the car loan out of the way, but I don't want to dip to much into my E-Fund.

    save that extra $3K and look for another investment

    savings is always >>>paid off loan

    especially since u already have enough to pay off both loans


    and cars are a depreciating asset so it make sense to take ur time paying it off cuz u are already getting the best years out of it
  • Moore7s
    Moore7s Call GodMembers Posts: 452 ✭✭✭✭✭
    Pay toward the one w the most interest.

    Looks like the car loan
  • BIGG WILL
    BIGG WILL Members Posts: 2,611 ✭✭✭✭✭
    Koltrain wrote: »
    If you have a high interest rate on the car and good credit, then it might be worth looking into refinancing your auto loan.

    Speaking hypothetically.......refinancing your car may give you a new loan that'll probably be for 60 months. Its longer than your current term, but it would lower your payment and interest rate.

    Say they give you a loan with a payment of $325 monthly over 60 months.... as long as there is no prepayment penalty, you could still pay the $400 you paying now, with the additional $75 going towards interest. Use that $3000 down on your new loan and you'd really be saving a lot.


    Was looking at this already. Went by the bank today and filed the paper work. If its approved, my payment will decrease by $50 and my interest will fall from 4.4% to 2.75%. Length of the loan will remain the same.


  • BIGG WILL
    BIGG WILL Members Posts: 2,611 ✭✭✭✭✭
    The market is bananas right now. In July I made more than I did in all of 2016. Every extra dime you have should pay off your 401k loan first. You are leaving long term growth on the table. You could be getting a 5 - 10% return right now. Pay 2000 - 2500 on your 401k and put the rest in savings.

    🤬 still popping!
  • Qiv_Owan
    Qiv_Owan Members Posts: 4,125 ✭✭✭✭✭
    BIGG WILL wrote: »
    Koltrain wrote: »
    If you have a high interest rate on the car and good credit, then it might be worth looking into refinancing your auto loan.

    Speaking hypothetically.......refinancing your car may give you a new loan that'll probably be for 60 months. Its longer than your current term, but it would lower your payment and interest rate.

    Say they give you a loan with a payment of $325 monthly over 60 months.... as long as there is no prepayment penalty, you could still pay the $400 you paying now, with the additional $75 going towards interest. Use that $3000 down on your new loan and you'd really be saving a lot.


    Was looking at this already. Went by the bank today and filed the paper work. If its approved, my payment will decrease by $50 and my interest will fall from 4.4% to 2.75%. Length of the loan will remain the same.


    ...18 months later....

    Give us that good news
  • BIGG WILL
    BIGG WILL Members Posts: 2,611 ✭✭✭✭✭
    loan was paid off and the market is being kind to me.

    the car will be paid off by July.
  • 2stepz_ahead
    2stepz_ahead Who I am is Complex, What i am, simply put. I'm a Threat walking out the lions denGuests, Members, Writer, Content Producer Posts: 32,324 ✭✭✭✭✭
    Didn't see this thread..
    Piece of mind trumps everything to me.
  • nawledge_god
    nawledge_god Lurk And Talk Shit Chiraq RefugeeMembers Posts: 5,622 ✭✭✭✭✭
    edited December 2017
    Option D (Pause)

    -A Nice Corner Suite At VDara In Vegas (The Other 4-5 Star Resorts Are Rip-Offs)
    -4-5 Grams of Unstepped On Perico (Should Last The Whole Weekend Unless Your A Savage)
    -2 Bad Escorts From The Floor Of The Bellagio (Better Caliber Rent-Some-🤬 )
    -A Nice Bottle Of Brown Liquor Of Your Choice
    -VIP Admission To Marquee Or [email protected]'s


    *Anybody Telling You That Fremont/Downtown Vegas Is Lit And Better Than The Strip Is Poor