Speaking of budgets I have a question

[beans]

You can, but depending on how early you are paying it off (and your loan ageeement) you may incur some penalties for doing so. But typically that's for paying off crazy early. Depending on your finance rate, it may or may not be worth it. Generally though, paying things off early is good.

[beans]

Well I'm specifically talking about paying car loans down early. If its credit cards you're talking about, pay those off ASAP. My aunt went to pay her car loan off early in full and they said if she was paying it off after X months, she would pay a fine but after Z months she was fine ( for example paying off a five year loan in one year might result in an extra fee). I would guess you would find that in the fine print of your loan paperwork or you could call your loan holder and ask.

Are these all car loans? What other kind of debt are you talking about here? I took out a private loan to help for college and u paid that sucker off in more than half the time because the rate was so high, I didn't have a problem with that.

[prettyinpink]

I was just shy of 3 years into a 5 year car loan and paid it off early. I called my credit union and asked about the pay off, they explained everything to me and I had no penalty for early pay off. As far as student loans, none of mine have any penalties for early pay off.

[brandienee]

These days banks don't usually penalize you for paying off loans early. But just to be sure, look up your loan contract and/or call the bank your are working with and see they say.

My thought is, if you can get it done early, do it. You will end up saving money you would be paying in interest.

[snatchinbride]

The smartest thing to do is pay off the highest interest loans first. Don't neccesarily target the largest payments, figure out who you owe the most interest to.