Should I settle my car now?

[zippy]

Estimated settlement amount when I log in to my account is R21,829. Contract balance is 23,386.17.

It does indeed seem as if interest savings will be negligible, but I'm also weighing up financial freedom. My plan was to always carry on like I never had that money once I paid it off, but loosening an extra noose around ones neck will be a nice feeling.

It's R1500 more than you would have if leave the debt. Every bit counts. Of course if you waste the savings, then you didn't gain anything. But you haven't lost either. You have less debt.

If you had to add up all of the minor gains that you passed on because they where too small, you might discover that you have missed out on a lot. It adds up. Of course if waste your little gains then the point is moot.

It's generally(not always ) the people who always take advantage of the small gains who will tend to not be wasteful.

 

[envo]

If you have the cash. do it. you can put the money you paid off to the car to a savings account immediately (or even RA or tax free savings) and be done with it. Just save for services etc.

That's what I did. You might not be saving a lot in interest by paying it off now, but then you have your own car, no other obligations and you can build up a nice savings with it and do whatever the hell you want.