An auto loan is a necessary way of living our lives. However, there are some considerations that can be made to make this part of our lives a little less stressful. Things such as paying off the loan early, refinancing, or making double payments all factor into the decision making process. Each one should be examined in depth and compared to your individual financial situation prior to making the decision. For example, paying off the loan early may seem like a great idea. You may want to use some inheritance money or a bonus from work that you have received. However, you should stop and examine your entire debt load. What debts are carrying the highest APR (Annual Percentage Rate)? Is it your auto loan or is it possibly a credit card balance? Taking care of the debt that has the highest APR first will save you interest charges in the long term and ultimately put more of that cash into your pocket.
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