Good morning everyone, my current situation is I am about to PCS to JBER in less than 30 days, I’m planning on retiring in the military and already have at least 4 more years ahead of me. I’ve been chasing my debt like a dog and paid off my student loans already. I have about 34k in the savings and my car loan is a 2023 Volkswagen Tiguan @ 3.3% APR. I’ve been on the fence about paying off my car loan because I can afford it but it would absolutely drain my savings. However, if I paid it off my wife and I would technically be debt free and it would free up $500+ a month. Any recommendations on what I should do?
Financial situation (need advice)
byu/Minute_Fan7275 inMilitaryFinance
Posted by Minute_Fan7275
3 Comments
Pay off debt.
Paying a loan off is bittersweet. Did it on my 60k truck. Sucked to lose all that money, but damn it feels good not seeing that payment every month.
“Should’ve invested that money” is what everyone said. But the feeling of not having any debt is better than almost anything FOR ME
I wouldn’t pay it off. Cash has a higher APR then that right now. You have the ability to be debt free if you had too so I wouldn’t worry about it. Take the 33?K and lop off a 3-6 mo e fund then invest the rest. I’d make extra principal payments on the car as you go, but I wouldn’t pay it off. That liquidity is your safety net. Especially with a move on the horizon.