assume you have just started a new job, have a car loan, and have a student loan. you have just received a cash gift of $1,000 from a relative, which of the following is the best use of this money?
When you borrow money, you might end up with more cash than you actually need. This is especially common with student loans and auto loans (whether it happens intentionally or by accident). When that happens, what can you do with the money – are you allowed to spend it on anything you want?
To find out what’s allowed, check your loan agreement. In some cases, there are restrictions, but other loans allow you to do whatever you want with the money.