Should I pay off car loan early or save for a home?

Thursday, February 19th, 2009 at 21:46

Yora asked:

I will be moving in with family and will not have the cost of rent and utiltiies. Should I pay extra towards the principle of my car loan, or should i bank the extra money for a down payment on a home.

I have no credit card debt, but have a $3800 loan with fixed payments, 8% interest.

Car payments are $350, 9% interest, 6 more years to pay off loan.

Reply:

I think it would be most beneficial to do both. It couldn't hurt to put even $50 extra toward your car loan (make sure to note that it should be applied directly toward principal), and still build your savings for a down payment. It really all depends on how much you can afford to save...

Take prescription drugs online without prescription 1/3 of the amount that you can save each month and apply it toward the loan payment and the other 2/3 of the amount should be saved.

Finance your car here onsite if you need help buying one of these beauties :)