Tired of these loan payments.

Another way to do this is to make one large extra payment at the end of each year. I have done this with a car loan. (I hate car loans and try to not use them anymore).

Let's say you have $4500 in your RD fund. you make your normal $75 payments all year long. you get to December and you say..."Yep, got through this year pretty good" and you make take $500 - 1000 out of the RD fund and pay down the principle. You still have most of your RD fund but you have less debt. Over the next year, you try your best to build back up the RD fund. If you can, then the next December you do it again.

This is a way you can pay it down early but you're not totally draining your RD fund.

 
What's the interest? If it's in the 3-5% range I'd pay it half down then see if you can redo the deal and run it out with a smaller payment till it's paid in 2021. Specifically keeping the loan for credit purposes. The good mark on your credit for maintaining this loan in good standing will pay for itself with a good credit reference. Also what's $30/mo. If you can redo your payment as I've suggested above. You get to keep half your rainy day fund and with the lower payments, you could add another $360/yr to it till 2021. Or, and I say this with a straight face.

SCRATCHERS BABY!!!!! You never know! Financial freedom could be a couple scratches of a coin you found under your cushions away!

 
Paying it off all at once might shave money off your monthly bills, but you do need to be conscious about the stupidity of how the credit scores, and the other cluster of things that get looked at. If you are not making monthly payments to a handful of different institutions, it can be crippling when it comes to needing to take out a loan later. Clearing out all debt might sound like a good idea, but without already being into a home mortgage, its a very bad idea.

 
I'm trying to build up the rainy day fund in the event of a job layoff. The more I think about it the idea of a second job paycheck sounds like the quickest way to pay the loan off. It would be a pain in the butt to work 60 hours a week but I could have both the credit card and loan payed off in about a year.

 
OH HSKR FAN said:
I'm trying to build up the rainy day fund in the event of a job layoff. The more I think about it the idea of a second job paycheck sounds like the quickest way to pay the loan off. It would be a pain in the butt to work 60 hours a week but I could have both the credit card and loan payed off in about a year.
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Not sure if you can do this where you live, but, donate plasma...Here, in Nebraska you can do it twice a week (I think, not sure, I have never done it) and I think they pay 40 or 50 dollars each time. It takes all of 15 minutes...

If you can do that...do it...do it 4-5 times a month and plop down 200 extra

 
OH HSKR FAN said:
I'm trying to build up the rainy day fund in the event of a job layoff. The more I think about it the idea of a second job paycheck sounds like the quickest way to pay the loan off. It would be a pain in the butt to work 60 hours a week but I could have both the credit card and loan payed off in about a year.
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Get the credit card balance to zero and maintaining that black hole of interest should be priority one. Take my idea about the loan if it meets the requirements. Having a line of credit open and active is actually good for credit purposes. To me if you're struggling with the $60 payments, you should look at cutting other things. Booze, women, basically anything fun. Just sayin.
 
So you're down over $1000 in a year? That's good work.
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If you can keep that you, I think you'll be better off.

 
I have increased my payments on the principal shortly after I started the thread. About a month ago I decided to cut my cable and just use the broadband service.

The last two months I was able to get a little more aggressive with lower electric bills and a much smaller Uverse bill. The best part was that I did not cut into the rainy day fund. Matter of fact I was able to increase my rdf.

 
Reading this thread it's interesting to see all the different financial strategies people have. I think it's funny the people that think credit cards are the plague. They are the plague if you don't know how to use them and be smart about it. I have set purchases that I know I have to make every month and put them on my credit card, because I know I budget the money every month for them. And nowadays there are some pretty good rrwards/cash back offerings with credit cards. In one year I accumulated over 250 dollars in cash back rewards while never drawing interest on a balance. And the best part is that my credit score has gone through the roof with it, which will save me money in interest in the future should I decide to take out a mortgage or car loan.

It can be a win win if you are responsible with it.

 
BigRedBuster said:
If you have CC debt, pay that off and never get it again. it is the absolute worst type of debt you could possibly have. Use your rainy day fund if needed to get rid of it.
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Wrong

Pay day and car tittle loans are the worst.

Well, that and loan sharks

 
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