Excellent points MoneyizHere:)
If you have the zero % card then pay off with the Zero % card.
I hadn't initially considered that, but it would save me about $200 in interest (sort of disappointing, I was hoping for more of a financial impact) since the cc offer also includes zero transfer fees.
Not much in $, but still worth it to me since it has the benefit of owning the car clear and free. As I recently found out, cars that are not paid off can be a complication for the beneficiary in the will, if they do not have the funds to pay off the balance in full.
I am trying to simplify things as much as possible, but sometimes it is hard to see clearly and optimize the outcome.
The $50K CD represents a year and a half worth of cash cushion for us to live on in retirement if things were to go awry. We do have other investments and a paid off home.
If you're planning on spending your EF soon - that indicates to me that you should not put that much into the CD's since you'd need to build that back up - otherwise you lose your returns.
True, but No, not in this case.
We have separate finances and each of us has an EF - we try to have a combined EF value of $10K. Right now his is more than fully funded and even after the $6,600 is gone from mine I'll still have $900 and plan to build it up again slowly.
Two things in my favor, I don't need the $6,6K all at once - it will be spent over a four-month time period. Second, I am not obligated to pay $1,587 into the CD which means I can use it for an emergency or whatever else if I need/want to. The effect on my returns would be negligible since I'd only lose out on not earning interest on that months $1587.
I'd probably cover it with the cc anyway, get a few rewards points and a free 30-day loan - my slush fund is $1500 for just such little surprises or if it were a larger problem Mr. R. could cover it.
I'm not concerned about locking up funds - the CD's are just one aspect of our retirement plan. I have enough income to live on and still save $1587 while waiting for Mr. R. to retire.
That car loan was not planned. Long story, but I bought two cars and financed one of them and I'm so ready for that car loan to be done with.