<prompt> Human: Ive always thought I want to keep my 2.91.9 car loan. This guy is arguing that if I have the cash to pay off my car, I should, because you get rid of your car payment and you would invest the car payment into the market and instead of essentially making an average of 7, Id make the 7 plus the 2.9 Im saving on the car loan. This sounds like it makes sense but Ive always thought otherwise. Which is correct?  <response>: Really depends on how confident you are that you can make more than 2.91.9 in the market. You dont get to double dip and claim both the 7 hypothetical market returns and also the 2.9 interest. Essentially the question comes down to risk tolerance and you value a guaranteed 2.9 rate of return paying off the loan early vs a possible-but-far-from-guaranteed 7 or whatever rate of return in the market. 