The Personal Finance Podcast

This One Move Could Save You Thousands on an 11% Loan (Money Q&A)

15 snips
Aug 27, 2025
Discover strategies to save thousands on an 11% loan by rethinking your payment approach. Learn how to turn a truck stipend into a no-cost vehicle every few years. College students get insights on prioritizing a Roth IRA while managing school expenses. Explore effective debt management techniques and the importance of establishing an emergency fund for greater financial stability. Plus, find out how to maximize your retirement contributions while safeguarding your personal data from scams.
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ADVICE

Weigh Certainty Versus Potential Market Gains

  • If you want certainty, keep paying the HELOC aggressively and eliminate an 11% debt fast.
  • If you are disciplined and have an emergency cushion, invest the $500 difference to potentially outpace the extra $685 interest.
INSIGHT

HELOCs Save More Interest Early

  • HELOC interest accrues daily and the interest-savings curve flattens as balance declines.
  • That means early extra payments yield larger savings than later payments on a HELOC.
ADVICE

Turn A Stipend Into A Free Truck Cycle

  • Use your $1,200 monthly truck stipend to buy two- to three-year-old trucks so the employer pays depreciation and gas.
  • Build a rolling cushion by saving a year's stipend or buy a cheap work truck and bank excess stipend for future upgrades or repairs.
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