Rental Property Investor · Cincinnati, OH · Member since 2021 · 12 posts · 8 votes
Hey BP Community!!! I hope you all are having a wonderful day, so I've been having this internal battle with myself for a little while now. I am 22 years old, I have a 9-5 job, and am able to save an extra 1,000 a month. my dilemma is that do I put the 1,000 extra towards my car to pay it off quicker or do I save up for a down payment on a rental in the future. Just looking for some different opinions on this, will take all constructive criticism too! Thanks so much!!!
Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
4y
IMO it depends on the nature of the debt and the car. Is it a new BMW 5 series? If so, maybe consider getting into something more cost effective, while also re-evaluating the overall financial situation and behaviors. If that's not the case, then I would look at the rate of the loan. If it's 2% or something very low, then in my case I would not pay it off more quickly than needed.
Not a financial advisor :) that's just what I would consider in that situation.
Rental Property Investor · Cincinnati, OH · Member since 2021 · 12 posts · 8 votes
4y
@Taylor L. Thanks so much for your response, It's right at 3%, so maybe I could look at saving for a down payment over paying off the car earlier. I appreciate your time.