3 benefits of paying off my car loan I didn't see coming

Business Insider | 5/20/2014 | Laura Dunn
TaylorShayeTaylorShaye (Posted by) Level 3
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After I totaled my car in 2014, I entered into a $16,000, six-year loan on a used Honda Civic with a $259.26 payment and 5.59% interest.

I paid it off a year ahead of schedule, and immediately noticed three benefits I hadn't expected.

Money - Credit - Card - Debt - Month

I was able to put more money toward my credit card debt every month, I wasn't tied to my car insurance any longer and could opt for another plan with a lower rate, and I saw my credit score tick up.

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Months - Job - Palm - Beach - Hour

For the first eight months of my job in Palm Beach, I commuted an hour from Fort Lauderdale on I-95, which is known to be one of the most dangerous interstates in America.

On May 20, 2014, I found out how true that is. On the way to work that day, I got into a near-fatal car accident and completely wrecked my car. Fortunately, no one got hurt, and my job gave me the day off to recover from my shock.

Experience - Life - Time - Closer - Car

Because this was probably the scariest experience of my life, I decided it was time to move closer to work. But first, I needed a car.

Along with my bestie, I went to the local Honda car dealership on June 14, 2014 and after a few hours of browsing, chose a brown 2010 Honda Civic. After some paperwork, I entered into a $16,000, six-year loan with a $259.26 payment and 5.59% interest.

Years - Payment - June

Fortunately, it only took me five years to pay it off. I made my final payment in June.

As my car loan got smaller and smaller, I got more and more excited because it would mean keeping more of my money. When I made my final payment on June 28, a few immediate benefits came onto the table:

Originally, I wanted to...
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