Browsing Month: September 2019

How To Get Out From An Underwater Car Loan

MoneyTipsFew things are more satisfying than driving your brand-new car – until you realize that it lost value immediately after you left the dealership. Thanks to depreciation, it’s possible for a car to lose over 20% of its starting value within the first year. According to CARFAX data, cars can lose over 10% of their value after the first month. During the early stages of car ownership, it’s easy for a car loan to be underwater – meaning that you owe more on the loan than the current value of the car. With a down payment of 20% or…

Pros And Cons Of Paying Off Loans Early

MoneyTipsIt’s always best to pay off a loan as soon as you can, isn’t it? Not necessarily. There are several reasons you may not want to pay off your loan early, including the effects on your credit score. The obvious reason for early payoff is interest savings. By paying your loans off early (especially large ones), you can save substantial interest charges. Some loans discourage early loan repayment by charging penalty fees. Know the terms of your loan and include these fees in your calculations when deciding whether to repay a loan early. When assessing early loan repayment,…