I have approximately $25,000 in my savings account (drawing next to nothing in interest now!) and a car note for approx. $12,000 at 3.75% interest. I am retired and have my monthly Social Security and pension coming in, but no other income. I plan to keep my car for another year before trading it in and so far (knock on wood) I haven’t had any problems with it.
Am I wise to pay it off and reduce my savings by that amount since I’m being charged more interest than I make?
Because of these uncertain times I’d keep it in savings. My only thought is can you hang on to the car longer, at least until you’ve paid off the loan? I would hate for you to have to roll the loan amount into a new loan.
I will hold on my savings for now, the interest is not too bad. I will definitely used the car longer if it is reliable to save more money.
I would. Definitely! And move all savings to a high yield savings account. The Penny hoarder Recomends a few good ones like Synchrony bank for example.