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You math is a little off. If the remaining balance is 4K and the payment is $527 a month, it won't take a year to pay off the car. Payoff is closer to 8 months, after which the $500 a month is available for other uses.

Yes, you may be right on that. 4 years ago when I got the car loan, it was my only debt and I would sometimes round the payments up and pay $530, $550, or $600 depending on what extra funds were available.

How tight is your budget? Is the $500 a month car payment a problem or would the entire car payment be allocated to debt?

The $500 would go to debt. I've cut our expenses way down, but our monthly obligations are still numerous - mortgage, car loan, lease payment, student loan, utilities, phone, plus min payments on cc debt - and that is just scratching the surface. There's also child care, home maintenance, gas, groceries, etc. Would be nice to eliminate a monthly payment.

Do you have an emergency fund? Raiding the pantry, pockets, etc. and suspending saving is not necessarily bad. Draining your emergency fund is not a good idea.

The e-fund would remain intact. We haven't touched it in years and it is equal to about 18 months of expenses, includ debt service. My husband's job is stable-ish, but there's enough uncertainty that we've left it intact. It would take some time before he could find a similar position. We have not added to it. Savings now go towards retirement and 529s. Maybe I should divert some of that money towards debt repayment. Its in cash earning peanuts. Will talk to hubby about that.
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