Posts Tagged ‘car loan’

Get your car paid for well before it looks like the Beverly Hillbillies!

Paying off your car doesn’t have to take a lifetime.  With auto loan companies allowing you to borrow money on your car for 8 years, it may seem like a lifetime.  Beat them at their own game, take back control, and own your car before you are driving down the street like a Hillbilly!  I know, most of the cars don’t even rust that much, because they are plastic…I was trying to get your attention!

Now that I have your attention, the 7 quick tips to paying off you car:

1.  Talk to your bank about your current interest rate.  In case you haven’t heard, we are in a bit of a recession.  Interest rates are falling and banks are losing money to credit default.  They are more open now than ever before to discuss your interest rate.  They would rather discuss your rate than lose you as a customer.  But, you have to ask, they aren’t coming to you!

2.  Look at your current spending plan AKA Budget.  I know a dirty word.  Look for areas that you are spending that you don’t need to.  Change!  Stop going out to lunch twice a week and brown bag it.  That will save you about $20/week.

3.  Take the extra money you just found and apply it to your principle on your loan.  An extra $80 a month is probably increasing your payment by 30%, thus paying off quicker and reducing your amount of interest you paid the bank.

4.  Track your progress and celebrate.  You must write down how much extra you are paying!  Why, so you can go back and realize what you are doing.  It won’t seem as if your effort is making any progress.  IF you can’t see it, you can’t track it, and you won’t FEEL it!

5.  Visualize how you will feel when paid off.  This will go a long way when you are brown baggin lunch and everyone else is going out to eat.  You are going to feel great, stress free, peace, confident and happy that you paid off your car!

6.  DO NOT pull out your 401k and retirement investments.  You are saving those for the future.  The cost is also astronomical to do so!  IF you pull out of IRA to pay something off, and you are under 59 and a half, it will cost around 33% in taxes and penalties….not a good idea.

7.  Invest the money you saved on your car payment for something you really want.  Now that you have this extra $505 each month ($80 from baggin lunch, and $425 car payment) keep saving it.  You can start to put pictures up of the glorious vacation you are going to take, or the trip to see the kids or grand kids, dinner out at a NICE place…you get the point!

Take a step, you can do it.  Invest in Balance!

What one step can you take today to help you reach your goal?

 p.s.  If you found this beneficial, keep it to yourself and don’t tell a soul, they don’t need any help either.

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