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What to do....

We're paying on a 6 month interest free loan. It's not strapping us for money to make the payment, so my question is...
We will have the money next week to pay it off, so should we do that, or just make the payments like we have been, and put the money away? We will be finished paying it off by September.

 
Anonymous

Asked by Anonymous at 10:50 AM on May. 3, 2011 in Money & Work

This question is closed.
Answers (10)
  • Normally, I'd say pay it off if you already have the money BUT since it is interest-free, it isn't costing you anything to pay it monthly. In fact, by leaving your money where it is (assuming it's a saving account), you're actually making a bit of money (a little bit, since savings accounts don't pay that much interest nowadays) while still paying down your loan. And unless you have a new bill or two starting before September that would be a bigger priority, you should be OK.
    Anonymous

    Answer by Anonymous at 11:06 AM on May. 3, 2011

  • Depends........will you be done paying it off before the interest starts being applied? If so, it really doesn't matter. I'd probably just keep making payments and use that money to either add to the savings account or treat the family out to dinner.
    AllAboutKeeley

    Answer by AllAboutKeeley at 10:57 AM on May. 3, 2011

  • I'm all about paying stuff off as soon as I can.
    emmyandlisa

    Answer by emmyandlisa at 10:52 AM on May. 3, 2011

  • I would pay it off personally. One thing less to worry about every month. I would love to get rid of some of my BILLS...
    Cddavenport

    Answer by Cddavenport at 10:54 AM on May. 3, 2011

  • Pay it off! I understand that you aren't paying interest, but why have that bill hanging over your head? You or your husband could lose your job next month and then you won't use that money to pay that bill, then the next thing you know you are being retro-ed the interest from the beginning of the loan. Just pay it off and get it out of your life forever.
    slw123

    Answer by slw123 at 11:06 AM on May. 3, 2011

  • I would pay it off and each month put in savings what you would be paying on that loan. Anything can happen and I wouldn't want a large loan like that interest free or not hanging over my head.
    chaiteamomma

    Answer by chaiteamomma at 11:54 AM on May. 3, 2011

  • It depends. If you don't have great credit, continuing to make payments can help you a lot in that department, and without interest to worry about, it wouldn't cost you anything extra. But if you do have good credit, then I'd go ahead and pay it off just to get rid of the bill.
    DragonRiderMD

    Answer by DragonRiderMD at 11:07 AM on May. 3, 2011

  • Do you have an emergency fund? If not, put a couple thousand away in savings and pay the rest on the loan. Then keep making payments on the balance.
    customcat2000

    Answer by customcat2000 at 11:10 AM on May. 3, 2011

  • Pay it off! It's so nice to have the payments off your back, even if they aren't breaking the bank.
    lovingmy4babies

    Answer by lovingmy4babies at 12:24 PM on May. 3, 2011

  • The loan is interest free until it's paid off. The amount is about 10,000, so the payments aren't really small, but we're making them weekly so it's not a huge sum every month. We've already made one full payment... We wouldn't have taken the loan if the money we're getting would have come sooner.. We don't have any other loans, and I told Hubby that we should put the money away, and just ride out the loan since we can afford the payments... We just don't know what to do, and wanted to see what others would have done... TY!
    Anonymous

    Comment by Anonymous (original poster) at 11:07 AM on May. 3, 2011

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