Shake shake shake...

[missroserose]

Just to shake things up a bit, this Friday I ask you a question! (But you can still ask me a question, too.)

[Poll #1293225]

I encourage thinking outside the box; if your answer doesn't fit neatly into a category, feel free to post additional thoughts.

Comments

[joyfulleigh.livejournal.com]

Just check your math carefully. If you only have a year left on your current loan and the only loans you can get now are three year loans, you may end up paying more even if the interest rate is lower. Or, you could refinance to get the lower interest rate, but plan on paying it off early (make sure there are no penalties for early payoff, and then pay more each month than is really due) even if the term of the loan is long.

Another alternative is to go half-and-half between options 1 and 2. Set up a high interest savings account or no-risk CD for some of your "extra" money even if it doesn't equal three months' salary, and pay off some of that car debt with the rest.