re: #101 Ace Rothstein

The balance on my car is about $18,000 with almost two years to go to paying it off. The interest rate is 1.9%. I have the cash to pay it off and be done with the payment and it wouldn’t hurt me one bit if I did. Should I pay it off now?

- having cash in the bank and a manageable loan is better than having less cash and no loan
- the last part of a term loan is mostly principal, so the loan has mostly been ‘paid for’ already. this is interest free money.
- already having a loan is better than having to ask for one

if you can afford to pay off the loan, then you dont.
you keep the money and use it to pay the loan each month.

and if something unplanned or unforeseen comes up, you still have that cash available, just in case.

correctly managed debt, like this, is not a vice, or to be feared.

if you don’t have a credit issue (ie need to reduce your outstanding credit to say, better qualify for a mortgage), then there is, imo no benefit to paying of a loan like this early.

one danger’s opinion