Paying Interest Can Drain Your Finances While most people simply assume that they will make a car payment every month, imagine what you could do if you never had that obligation. You could save for retirement, afford a larger home, or simply increase your discretionary spending. Dont forget that when you make a car payment, you are paying interest.
Instead, why not save your money to buy a new car with cash and earn interest at the same time. A Car Payment Eats Away at Your Safety Net Since my wife and I both own our cars outright, we have fewer monthly expenses. Should we lose our incomes, our safety net will last longer than it otherwise would have.
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