We purchased a new 2023 Honda Odyssey late August 2022. We paid for it with cash and a loan at 3.49% for 48 months. The principal balance started at $40,399. We have consistently made payments of much more than the minimum for just over two years and have a balance today of $5,725.96.
We currently plan to pay off this loan before the end of the year, possibly before the end of November. I have never been one to want to hold debt any longer than necessary...paying the bank interest sucks!
The less debt we hold, the fewer expenses we have relative to our income, the more space we create for flexibility. The ability to adapt to increasing prices and inflation. The flexibility to put our money into places that earn us money. The flexibility to spend on things with meaning to us, like family vacations.
We are also about 14 months away from my husband retiring from the military. He may get another job because he likes to work, but we are also minimizing our expenses to live on the pension he will receive and our retirement savings. The less debt we are obligated to the better!
I highly encourage anyone reading to get your house in order. Cut unnecessary expenses, establish an emergency fund, pay off debt as fast as possible. Regardless of income, we have personal responsibility to ourselves, our family and community to be a good steward of the resources given to us.
