The Motley Fool Discussion Boards

Previous Page

Financial Planning / Wealth Creation Strategies


Subject:  Re: Poll: Which road? Date:  3/5/2004  5:26 PM
Author:  Mark0Young Number:  6 of 77

Auto loan is 7.25

Does your auto loan have a prepay penalty? Is interest calculated based on "simple interest" or "rule of 78"?

Do you have a fully-funded emergency fund?

If you have a fully-funded emergency fund, and if your auto loan has no prepay penalty and the interest calculation is based on "simple interest", I would be inclined to pay off the car loan or split the money between paying down the car loan and investing. If you would be reducing the insurance coverage on the car after it is paid off, no prepay penalty and "simple interest", I would suggest 100% extra towards car loan.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us