<#-- Rebranding: Header Logo--> <#-- Rebranding: Footer Logo-->

Should I keep our money in savings or pay off our car?

We have about $47,000 in savings. We have a monthly income of about $3,000. Our ages are 75 and 77. With the economy as it is and the way it looks in the future, should I pay off our 2015 car debt of $20,000 or keep our money in savings?

Personal Finance
Answers
Sort By:
Most Helpful
June 2016

This can be a very subjective question. What I mean by that is opinions will vary depending on who you talk to and how much they understand human behavior. I will get straight to the point. In my professional opinion it would be better not to pay off the car. Why? Because you may need some of that savings in case of a "real" emergency. It is very difficult to save a nice nest egg of $47,000 and in comparison it is fairly easy to unload a car that you may no longer want because of expenses. There is nothing that feels quite as good as knowing that you always have a choice to payoff the car if you wish, although you have not opted to do so. You will also sleep better at night. :) To have your savings account decrease to $20,000, I believe, will not set well with you after you spend your hard earned money on a wasting asset (automobile). Keep in mind that if you are really concerned about the debt at this time you could also reduce your debt substantially by finding a clean, reliable, used car. There are many that you can get for under $5,000. I hope this helps and enjoy that retirement!

June 2016
August 2017
September 2017
August 2017