I have $2000 and want to either...

[waloshin]

A: Put it down on my loan:

The interest rate is 6.25%, 3.25 percent is variable while the 3.00% is compound now I know variable is bad... but having money saved up for if the car broke down is a great idea, or if i lost my job ect

This is what I pay every month I have 59 payments left.

Interest Amount -$21.68
Loan Principal pymt -$167.76

So what would I save if I put down the $2000.00

Current balance: $9,572.27

Or

B) Put the money in a tax free interest savings account through ING direct Canada at 3%.

[CharlesA]

Paying down the loan would be a better idea tbh. Debt sucks.

[RATM_Owns]

C) Buy a decent guitar and amp.

[SmittyJensen]

make the decision yourself, asking on a forum such as this is a bad idea.

[waloshin]

make the decision yourself, asking on a forum such as this is a bad idea.

Lol

[Paqman]

Pay off your debt, you'll end up with more in your pocket in the long run.

Talk to your loan provider about whether you're able to make a lump sum payment on the loan. It'll depend on the actual contract, but you should end up paying a lot less interest on the debt.

In the current economy savings accounts earn peanuts. The money won't earn you squat in a savings account. You're better off using the money to reduce the cost of your debt.

[dragos240]

Donate to Haiti.

[lisati]

make the decision yourself, asking on a forum such as this is a bad idea.

+1.
"opinions are like butts, everyone has one"

- p. Mcgraw

My $0.02: I agree with the observation that debt sucks

[ratcheer]

Bypassing all the philosophy and answering you original question, paying the amount on your loan balance will give you the greatest monetary benefit. That is assuming, as mentioned above, that your loan contract allows you to make principal prepayments without penalty.

Tim

[gletob]

Bypassing all the philosophy and answering you original question, paying the amount on your loan balance will give you the greatest monetary benefit. That is assuming, as mentioned above, that your loan contract allows you to make principal prepayments without penalty.

Tim

I say this ^^^^^

But take a little bit (500 or so) and put it in a savings account.

[oldsoundguy]

keep your 2 grand and buy some stock from companies that have no debt .. you will see your money double in about 18-24 months.

Then, to pay off the car early, make your monthly payment PLUS the interest payment (estimate it) for the next month.
You will be surprised just how quickly it gets paid off.
(do the same on your credit cards!)
On a 30 year mortgage, doing that will pay it off in about 18 years!

[waloshin]

Such as aapl stock?

I just phoned the bank and they said that I could put the money on the principal without any penalty. So it would still be smarter to put the money on the loan and not have any savings then?

[earthpigg]

semi-off-topic:

ive always been a fan of talking the *whatever* salesman into selling it for cheap, playing dumb when i see the ridiculous interest rate, and then paying it off immediately so i don't pay the interest.

was very easy to do when in the military, since the local places practically earned a living by giving loans with silly interest rates to young troops that didn't know any better.

[Lightstar]

Take 100$ to buy a sexy lingerie set for your girlfriend.
If you don't have one, take 200$ and buy one online.

Use the rest of the money to pay your debt. Yes debts suck.