Should I pay off after getting laid off?

[cocopanda]

I have, I think, 5 more payments left. 718$. But I just was laid off. Would you just bite the bullet and pay off the car or just try and make it work? I have 0.00% APR. And everyone keeps telling me not to pay it off because its free money. I just feel better if I would get rid of that payment.

I've already landed positive interviews somehow. So I'm not dead in the water. I received my PTO pay out and have a severance coming on Friday. Should put me way over the amount needed to pay it off. So I will have plenty of money if I do. But would you? Or would you just ride it out because its 0.00% APR?

I can't wait to be done with this payment. Most expensive thing I have ever bought in my life.

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[Johnny Rockit]

Get the new job then pay it off. Better to have cash on hand in case it takes a while to land a new gig. Congrats on the parenthood thing. (I assume an older kid?) Make the best of it.

 

[SnowFox]

I have, I think, 5 more payments left. 718$. But I just was laid off. Would you just bite the bullet and pay off the car or just try and make it work? I have 0.00% APR. And everyone keeps telling me not to pay it off because its free money. I just feel better if I would get rid of that payment.

I've already landed positive interviews somehow. So I'm not dead in the water. I received my PTO pay out and have a severance coming on Friday. Should put me way over the amount needed to pay it off. So I will have plenty of money if I do. But would you? Or would you just ride it out because its 0.00% APR?

I can't wait to be done with this payment. Most expensive thing I have ever bought in my life.

I'd pay it off. I'm sure someone has an algorithm, filled with maybes, coulds, mights, and what ifs

Psychologically I just feel better having less recurring bills.

 

[daSNAK3]

0%… keep making payments until you at least get hired on somewhere. Keep the extra money in your pocket… just incase.

 

[Esha800HP]

I just paid mine off last month. Best feeling ever. But in your situation, I would just wait, that's just my opinion. I've had plenty of opportunities to pay mine off within the last 12 months but something always came up and was glad I didn't just dump a bunch of cash paying it off. Wait like another month or two and reassess.

 

[cocopanda]

Oh ya. My fucking COBRA payment to keep my Health Insurance comes out to 1100$ a month till I find a new job. But that doesn't start till May.

 

[Skye]

I like cash; it gives one options. Coupled with the 0% loan, I'd keep making payments. Sucks getting laid off, but it reads like things are moving in the right direction and you've got you're head on straight.

While it's nice to rid yourself of the debt and lien, paying early doesn't seem to offer any monetary advantage. Even a few months of payments sitting in ready cash could help in one of those "uh oh" moments while other events are moving forward. Life happens.

Best Wishes OP.

Edit,

An additional thought to everyone and their careers...always go to work thinking that day will be your last day of employment; this is something of a motto or thought I developed over time.

Resumes, references, educational transcripts and certificates, IDs and passports, six months to a year of expenses in cash, a short list of companies to work for, etc. Just like spies in the movies cracking into their emergency stash for a speedy exit, setup your own package and always have it readily available.

Like many, I've been laid off a few times in my career. Unfortunately, it happens. One layoff sucked. Another, it was a blessing in disguise. If facing a similar situation, having some type of package or plan helps you in either circumstance.

If you do receive an offer of a job, take the day off, have a nice meal. Drink. But don't make any significant decisions until the paychecks begin arriving.

A former co-worker received, signed an offer of employment from a Fortune 100 company and began making life changes on that offer; then, it was cancelled. Someone within that company had mis-interpreted a new contract award. The problem was not realized until HR began requesting monies to continue to move forward. Not only was this person's offer pulled, but several. IDK how often something like that happens, but in my mind, while offer letters show intent, they're not an obligation. YMMV.

 

[ice445]

Just keep making on time payments

 

[cocopanda]

I like cash; it gives one options. Coupled with the 0% loan, I'd keep making payments. Sucks getting laid off, but it reads like things are moving in the right direction and you've got you're head on straight.

While it's nice to rid yourself of the debt and lien, paying early doesn't seem to offer any monetary advantage. Even a few months of payments sitting in ready cash could help in one of those "uh oh" moments while other events are moving forward. Life happens.

Best Wishes OP.

Well. I put away ALOT of money before being laid off for a house. So I'm cash rich. I just am getting a huge PTO payout and nice severance. So I figured It might just work out well.

 

[_zOmbIE_]

If there's no interest, I don't see why you'd rush to pay it off, personally.

 

[LCK22GT]

It sounds like you’ve positioned yourself well to handle the employment transition. I think you’re going to be fine either way. I understand the sense of freedom in paying off a loan. That can be a nice morale boost. Best wishes on the job hunt!

 

[IPOGT]

I have, I think, 5 more payments left. 718$. But I just was laid off. Would you just bite the bullet and pay off the car or just try and make it work? I have 0.00% APR. And everyone keeps telling me not to pay it off because its free money. I just feel better if I would get rid of that payment.

I've already landed positive interviews somehow. So I'm not dead in the water. I received my PTO pay out and have a severance coming on Friday. Should put me way over the amount needed to pay it off. So I will have plenty of money if I do. But would you? Or would you just ride it out because its 0.00% APR?

I can't wait to be done with this payment. Most expensive thing I have ever bought in my life.

Wait till you buy a house… Ride that 0%. Invest the money and let interest accrue while you pay 0%.

 

[MAGS1]

Stay liquid (cash). 0% is free money, just keep making the payments. You end up paying the same no matter what but I personally would want to keep as much cash on hand as possible at any given time.

Sounds like you’ve built up cash reserves as well, so that’s good. You never know how long it will take to find a new job these days.

 

[Boosted Pony]

I have, I think, 5 more payments left. 718$. But I just was laid off. Would you just bite the bullet and pay off the car or just try and make it work? I have 0.00% APR. And everyone keeps telling me not to pay it off because its free money. I just feel better if I would get rid of that payment.

I've already landed positive interviews somehow. So I'm not dead in the water. I received my PTO pay out and have a severance coming on Friday. Should put me way over the amount needed to pay it off. So I will have plenty of money if I do. But would you? Or would you just ride it out because its 0.00% APR?

I can't wait to be done with this payment. Most expensive thing I have ever bought in my life.

Pay the loan off even at 0%, you won't have to worry about the next payment and you will feel relief knowing the car is yours outright now.

I payoff my car loans early, as early as I can, my mustang I paid off in 25 months on a 48 month loan, my Tacoma I paid off in 6 months so we would not have a payment each month. So we have a 2021 Mustang and a 2023 Tacoma both paid for free and clear.

 

[Boosted Pony]

There is no free money as some are implying, you have an obligation of $718 dollars a month, you just don't have to pay interest on that, you are still obligated to pay that $718 dollars a month or you lose the vehicle.

Free yourself of this debt by paying it off and don't start looking for another new vehicle because it is paid off, drive it and enjoy it and enjoy the feeling of not owning a debt on it.

You will take a hit on your FICO score which is a BS system designed to keep you in debt, any time you payoff a loan like this including a home loan FICO drops your credit score, it will come back in about 6 months but I just want to warn you, and this is going to happen no matter if you payoff the loan now or drag through another 5 months the FICO score is going to drop once the loan is paid off either way.

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