You all have been so encouraging to me over the past several months as I have discussed our car loan. To recap:
- April 2008: I showed you what our debt looked like by using Monopoly money
- October 2008: Sent an extra $277 toward the principal
- November 2008: $277 extra
- December 2008: We wanted to be certain our son was born in 2008 so we could claim him on our ’08 taxes and get a pretty sizeable deduction. If he was born in ’09, we’d owe. Instead of paying extra on the car, we just saved our money that month.
- January 2009: Sent $1,350 extra
- February 2009: Sent $662 extra
- March & April: $0
- May 2009: $5,080
In March, we found out that Shane’s company would be laying off some of its workforce. We went to savings mode again until things started to look more stable.
The situation has now improved! My hard-working husband was promoted and has received a raise for his efforts. Hot dog!
Now that we have enough to pay off the car in full, we’re gunna.
When I login to my bank account info, the remaining balance is $5,083. That is not the “pay off balance,” however. Since we’ll be paying it off in less than 36 months (more like 18 months!), we’ll owe a 1 percent pre-payment penalty.
There’s a cool way to get around this. Mrs. Money taught me that I can pay almost all of the balance, leaving it around $1 or so. Then, I’ll owe a 1% prepayment penalty of just a few pennies, instead of the $50 it would have been right now.
I’m writing a check for $5,080. Wow. I have never written a check for that much — not even during my tuition-paying college years.
Once it clears and my car balance is down to a few bucks, I’ll call and see if they can just take the remaining bit out of our checking account and send me the title. The title. To the car that I own. What?
And then I get to do the debt-free happy dance! Yay!