Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm a little nervous with #3 being a variable rate. I am comfortably paying my minmums, plus have an extra $500 or so each month. I already contribute enough to my 401k to have my company fully match.
Thanks for your advice!
Are you saving anything other than your 401K? If you are, good -- if not, I'd start saving about half -- 250.00. And then I'd wrap up quick that small fed school loan with the other 250.
Then take that fed payment and the other 250.00 and split it between the car loan and private student loan.
I'm a little nervous with #3 being a variable rate. I am comfortably paying my minmums, plus have an extra $500 or so each month. I already contribute enough to my 401k to have my company fully match.
Thanks for your advice!
if you need the gratification of the reward of paying something off, then #2 first, then once it is paid off move to #3. also, if you pay #2 off, would you then remove collision from insurance? if so, then you're saving even more money.
but financially speaking, paying #3 off makes the most sense. rates, at some point in the next couple years, will start to go up.
don't bother paying extra on #4 until you have nothing else to pay in debts. the rate is excellent. but...why is your federal student loan rate variable?
That's some massive debt. Regardless, I'd probably pay the car loan off first since its the only one that can't be deducted for tax purposes, then I'd perhaps pay off the federal student loan just to get rid of it.
If there is any sign of interest rates spiking, I'd divert everything to #3 though.
the amount of interest one can deduct for student loans caps at some point. i think it's $2,500 or something isn't it? if there's no cap, then user_id is correct.
Yeah, if #3 wasn't variable, then I would pay off #4, then #2, then #3, just because as each one gets paid off, you can roll the minimum balance payment from that one into paying off the others faster.
However, with #3 being fairly massive, and variable, I would want that one to go away as much as possible as quickly as possible. I would put everything toward that one. Likely you will have #2 and #4 paid off anyway long before the time #3 is done. As the other loans pay off, roll the extra from their minimums into #3.
That way, even if the interest rate climbs, at least you will be paying interest on a smaller amount.
Is the interest rate capped in the amount it can change each year?
My Federal loan is through AES, which no longer issues loans. Anything through them (at least for me) was always variable. I can pay that off immediately should I need to. Rather focus on the others since the interest is very minimal at this point.
No, I would not drop collison since the car is worth more than double what I owe.
Yes, I'm saving beyond my 401k. I have a substantial amount of cash sitting in my bank account, ready to attack these loans and leave a cushion for my own piece of mind.
Yes, how much the rate can change in one year is capped.
User ID, so glad you're happy for me! Don't throw stones; you never know what each person's life is like and what kind of info they don't post when they ask a question (age, salary, job security, etc).
My Federal loan is through AES, which no longer issues loans. Anything through them (at least for me) was always variable. I can pay that off immediately should I need to. Rather focus on the others since the interest is very minimal at this point.
No, I would not drop collison since the car is worth more than double what I owe.
Yes, I'm saving beyond my 401k. I have a substantial amount of cash sitting in my bank account, ready to attack these loans and leave a cushion for my own piece of mind.
Yes, how much the rate can change in one year is capped.
User ID, so glad you're happy for me! Don't throw stones; you never know what each person's life is like and what kind of info they don't post when they ask a question (age, salary, job security, etc).
I appreciate everyone else's input! Thank you!
yeah, i'd do either the car loan or the private student loans, if variable scares you. personally, i would pay extra on the car loan for now since that is higher interest rate NOW, and who knows, by the time the private loan rates creep up, you may have paid off the car loan, and piled all of that into the student loans. you'd achieve max value that way. only way paying the student loan makes sense is if it is same or higher interest rate.
so car loan first in my book, as that's your costliest debt.
i could pay off all my debt tomorrow if i wanted to. but i feel more comfortable having money on hand and invested in liquid assets and paying off the loans over time.
you dont have to feel the need to pay off your debt simply because you can.
I would pay off the $1800 note first just to get it over with.
Then pay off the car loan since a car is a depreciating asset.
Then work on the $70k student loan @ variable rate. Then the mortgage last, since it's fixed at a very low rate.
You don't say how much you have left over each month to pay extra. I know it would be nice to pay down the $70k variable rate loan, but if you don't have $2000+ extra/mo, it's almost futile. Paying and extra $100/mo for 6 months and having a $69.4k balance vs $70.0k when/if the rate increases really won't help you out much, you know? But having a $58k balance vs $70k would help....if you had an extra $2k per month to pay down. Make sense?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
