This 40-year-old puts an extra $600 toward his car loan each month so he can pay it off early—here's why that's a smart approach

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This 40-year-old puts an extra $600 toward his car loan each month so he can pay it off early—here's why that's a smart approach. (via CNBCMakeIt)

Isaac Diaz, 40, with his current Acura car. He's trying to pay down his car loan early to reduce his outstanding debts., has kicked his plan to pay off his car loan into overdrive.

Typically, his car payment is $371 a month, but recently, Diaz has been paying about $630 extra every month to bring it to an even $1,000 and help him get rid of the debt quicker. if you're able to afford it. "It's always a good idea to pay down your loans and a car purchase is probably one of the biggest loans that people take out short of a home purchase, so it's a good place to start," says Ronald Montoya, senior consumer advice editor with auto research company Edmunds.

Paying off your car loan can also take pressure off your monthly budget, Montoya says. After your car is paid off, you now have extra money you can use to pay down other debt, increase savings or put toward expenses.

 

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MakeIt Smart? Lol, never take a loan in the first place for something that depreciate. If you can’t pay cash for something that depreciates from the day you buy it, you can’t afford it.

MakeIt He’s wasting money on gasoline. The smarter thing would be to buy a used EV - far cheaper to run and maintain.

MakeIt Car is 8 years old. I hope it is well maintained.

MakeIt nice

MakeIt How bout not taking a loan.

MakeIt On a depreciating asset? Really? This guy needs to put the crack pipe down.

MakeIt Better move for him would have been attending college and get a better job after finishes college

MakeIt LOL didn’t you guys post that bullshit article about how some dude was now sad that he paid off his mortgage early and how that wasn’t a great idea… now you telling me putting more money into something depreciating is the way to go?!?!? Wtf clowns running this place?

MakeIt These kind of articles are ridiculous. Of course it’s a smart approach… for the handful of people in the world that can afford to pay an extra $600/mo towards their car. Are you also going to tell us it’s a good approach to pay for your car in cash

MakeIt I don't use loan to buy a car

MakeIt Tell him to stop now and buy $BTC or $ETH

MakeIt Putting extra money into depreciating liability ,that's very smart 🙄😒😑😱👀 With extra $600 per month he can buy Bitcoin or Ethereum for his cars loan remaining term and he would be better off . Car loans are not tax deductible nor extra payments, investments are..dumass

MakeIt If he invests that 600 every month he'll probably have close to 100k in 7 years 10 years for sure.

MakeIt That’s a terrible approach lol. Most interest rates are under 3%. Why not use that almost free money as leverage.

MakeIt May I ask you to watch and publish my video message to Mr. Biden and Queen Elizabeth asking for protection and help from the Russian regime of Putin? I am in grave danger.

MakeIt Thats the dumbest approach putting more money into a depreciable asset. CNBS have a lot of donkeys working there

MakeIt That's a bad idea. Just buy a used car you can pay once & invest the rest or that $600/month

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MakeIt If I drive that car at 40 blow my brains out

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The New 40-Year Mortgage Modification. And What It Means For You.Having a mortgage for 40 years might sound like a long time. But when there are nearly 2 million people still in mortgage forbearance since the government began offering Covid-19 relief roughly 15 months ago, it could mean helping millions of people keep their homes. Ginnie Mae recently said it would help eligible borrowers transition […] Advisor This further reduces supply by allowing those to stay in homes they cannot afford. It will inflate their home values to cover their defect. A reward for not making payments. Capitalism will be blamed but this is socialism. Advisor Interesting. Curious to see how this plays out after the forbearance ends in sep.30.
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