jessjerr1831 wrote:
I don't understand the response, from beemerphile1 especially the parts about "I pay cash" and "some people like being in debt". Some of us do what is financially beneficial to ourselves. I have payed cash for large items and have also financed and payed off early. I don't see the benefit of taking cash out of savings if my savings is paying me more interest then what i would pay in interest for borrowing that amount.
First off, you only quoted part of what I said. I did not say they should have paid cash. I said that even though I do pay cash, I don't understand their concern. All the OP needs to do is buckle down and make extra payments. Rice and beans for lunch and dinner with mac-n-cheese for breakfast will get the job done. The only other alternative is to sell the thing. If they can't afford extra payments they sure can't refinance for a shorter period.
If you have any tips on savings I sure would like to know where these
risk free savings accounts are that pay more interest than a loan. Currently a typical bank savings account pays around .05% and a typical RV loan is in excess of 5%. That is a big spread and that is where banks make their profit. Market investments are not a valid comparison because of risk and uncertainty of gain or loss.
