Just need a little reassurance
I’m looking for some reassurance and outside perspective. I wasn’t always great with money, but I’ve really tried to get my act together since having kids.
Here’s my situation:
- Net monthly income: $7,680
- Monthly expenses: ~$3,965
- Single parent household with 2 kids (ages 5 and 12)
- Activities/summer camps: about $5K/year total
Debt:
- Car loan: $607/month, ~1.5 years left, 7.55% interest
- Mortgage: $152K remaining, 3.125% interest
Savings:
- ~$67K in high-yield savings
Upcoming expense:
- Siding project: $12K total (already paid $8K deposit) → savings will drop to about $55K
I’m debating whether I should pay off the car loan early, but that would bring my savings down to around $43K, which makes me a little nervous as a single parent/homeowner. For context, my house is older, but I’ve already replaced most of the major things recently (roof, well pump, tank, water heater), so I’m hoping no big surprises for the next couple of years.
My question: Would you prioritize paying off the car loan at 7.55%, or keep the larger cash cushion given my situation?
I feel like I’m finally in a stable place financially, and I don’t want to make a move I regret either way.
Posted May 12, 2026, 3:01 PM UTC