I split extra money between both. It was slower, but I felt less anxious. Sometimes the best plan is not mathematically perfect; it is the one you can stick with.
Is it better to keep extra money in savings or pay more toward my car loan?
#car loan#debt#money#personal finance#savings
I have a small emergency fund and a car loan with a decent payment. Part of me wants the debt gone, but part of me feels safer keeping cash.
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People discuss balancing cash savings with paying down a car loan.
Answers & Discussion
Check the interest rate. If the car loan is low and savings gives you flexibility, I would not rush. If the rate is high, extra payments make more sense.
I would keep at least a small emergency fund before paying extra on the car. Cars create surprise expenses, and if you drain savings you may end up using a credit card.
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