Howdy Y’all, I’m trying to get some recommendation for how you can greatest deal with paying off an auto mortgage after receiving an insurance coverage payout.
In October of this 12 months my model new truck was totaled whereas parked by a teenage drunk driver. Insurance coverage was solely keen to pay out $40k and I owed $5k on the truck ($35k remaining money) (This was at 3.5% curiosity and my intent had been to repay the remaining quantity with out having insurance coverage sending them a penny, however Allstate disregarded that request and despatched them the cash in any case)
I used to be in a position to buy a alternative truck and after the payout I’ll nonetheless owe slightly below $10k. Sure, I’m conscious that I ought to have discovered a truck that will have been absolutely coated by the payout quantity. That’s inappropriate at this level.
The remaining $10k is at 7.94%. I’ve $25k in a Roth IRA, $65k in my 401K and respectable fairness in my home.
We have been trying to tackle a HELOC to do some home improve earlier than this example got here up and put that on maintain. Is that my best choice for the remaining quantity on the Auto Mortgage? I would favor to not withdraw from my IRA or take a mortgage on my 401k if in any respect attainable since I’m 40 and principally screwed for retirement in any case, so having one thing that can proceed to develop for the subsequent 20 years could be a assist.
