My only debt right now is a car payment. I still owe $12,000 on the vehicle, and currently I have $25,000 in savings. I’m in a very stable line of work, but my income can vary somewhat from month to month. Should I hang on to my savings, or pay off the car?
Debt is a bad thing to have in your life, especially when your income can vary from paycheck to paycheck. You’re in good shape, except for the car note, though. It’s like a ball and chain around your neck.
You’d still have $13,000 left if you paid off the car. And with the money you’d free up, you could rebuild your savings in no time. Pay off the car, dude!
*Dave Ramsey is a seven-time #1 national best-selling author, personal finance expert, and host of The Dave Ramsey Show, heard by more than 16 million listeners each week. He has appeared on Good Morning America, CBS This Morning, Today Show, Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people regain control of their money, build wealth and enhance their lives. He also serves as CEO for Ramsey Solutions.