Use a 2% CD to Pay for a 3% Car Loan

That’s right. You heard that correctly. It’s financially better to use a invest money into a 2% Certificate of Deposit (CD) instead of paying off a 3% car loan directly. The math checks out. Buying a $35,000 Car Scenario Here’s the scenario, you want to buy a $35,000 car. Assume the following: 5-Year Term A … Read more Use a 2% CD to Pay for a 3% Car Loan

Paying off Debt: The Debt Snowball Method

The debt snowball method is used by paying off debt accounts that have lower balances first. Once an account has been paid off, that frees up some money next month, which you then take an apply towards your debt account with the next lowest balance. This can be emphasized when you are making minimum payments … Read more Paying off Debt: The Debt Snowball Method