I have this 19% personal loan with a payoff of $816.00 I’ve been paying for the last 4 1/2 years. I am so ready to pay it off I can feel it. I bring home about $1220 a month after taxes from work and about $2,200 in a savings account.
The minimum payment is $150.33 and they say I have six months left. Basically I would like to know the quick and best way to pay this off? How much of saving should go toward it?
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
How much of $2,200 saving should go toward paying of $816.00 at %19 debt? I bring home about $1220 after taxes.
Go ahead and pay the loan off now using the money from your savings account. Then to replenish the savings account put the old monthly payment for the loan in your savings account each month.
The risk in doing this is that an unexpected financial emergency might come up in the next eight months you might be a bit short, but you’ll still have $1,400 in your savings account and building it back up each month.
If you are comfortable with that approach, do it. Experiencing the joy of eliminating a debt is a special thrill to savor. Enjoy the accomplishment.
- Strategic Financial Solutions and Ryan Sasson Stumble and Get Pounded - February 13, 2024
- These Emotions Stop You From Getting Out of Debt - January 11, 2024
- 16 Common Myths About Getting Out of Debt That Everyone Gets Wrong - January 8, 2024