Should I drop 20k on my Autoloan to avoid paying alot of interest.
$45000 in the bank
$4400 in VA income/month plus a full time job Im looking forward to
I have a car with 13.04% interest and owe 57400 on it, Im thinking of dropping 20k on the loan that way I pay less in interest overtime, currently the per diem interest is $20/day for a total of $600/month when i pay the minimum payment which is around 1285. After doing the math if I pay 20k one time it will make my per day interest $13.47 per day at a total of $404.31 for the month that would mean if i continue to pay $1285 per month 880 will go towards the principal and the 404 towards the interest. I will still have the 25k left in savings and my VA checks every month to cover bills until I can get this career.
Guys im perfectly able to cover 1285 per month for the car note until i can finish it out, my issue is I don’t feel like no bank should get all that interest from me.
Kinda new at this but Im slowly learning I believe once I land a job and make about 2000 after taxes bi-weekly I’ll be able to chip even more off the loan until I can finish it out, as of right now the 4400 pays all the bills and still leave about $800-$1000 to play with per month but this is pretty tight for now until i can get a job, I plan to hold on to this car as its my dream car for at-least 7-10 more years and I think with a job and making as much as I would I could pay the loan off in a year and a half or so freeing up income as I wont have a car note. All opinions and advice is welcome. Tell me what yall think.
Posted Dec 11, 2025, 9:31 AM UTC