Should I pay off the car loan on my Kia Optima three years early if it only saves me $700?

"I have a low interest rate on my Kia Optima, but I now have the remaining $7,000 to pay my loan off three years early.

Doing the math, I found I'd save about $700.

Is it worth it to do so?"

Answer
“You probably don’t need to pay it off. You’d sink $7,000 into something that can deplete your emergency or retirement savings.
Furthermore, $700 in savings over three years is only $233 a year or about $20 a month. Is it worth it to pay off the loan (and close your credit account) and have your credit score temporarily dip for $20 a month?
That’s a question only you can answer.”
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Eric Schad
Answered on Jun 10, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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