<prompt> Human: My car is only 4 years old and is worth about 12000 according to KBB. My auto loan has about 5500 left on it interest rate: 2.8, monthly minimum payment 110. I have about 17000 liquid, and about 7000 allocated towards my emergency fund the rest is placeholder money towards my future expenses, like LASIK surgery, car maintenance, wedding, house down payment, etc.I have no other debts besides my credit cards, which I pay off in full every month. I know that paying it off will be better in the long run, but I cant help but be wary that Ill have less liquid funds for a while. Someone please convince me that paying it off now would be better, and explain!  <response>: If youre in a good position with your job, and the 7000 emergency reflects 6 months of your expenses - then pay off the auto loan, but pay the monthly payment youre currently making back into your saving or emergency account until youve re-couped the 5500 that came out of said account. 