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I was hoping to get some outside perspective on the best way to pay off my student loans, which are my only debt. Here's the numbers as of last month: Total: 11,085 A - 1,945 @ 2.48% B - 2,065 @ 2.48% C - 378 @ 2.48% D - 944 @ 2.48% E - 1,728 @ 6.8% F - 3,804 @ 6.8% My minimum payment is $157 and I've been paying more than that every month, which bumps back when you have to make your next payment. Right now I don't have to make another minimum payment until April. Since I don't have a minimum payment every month that gets evenly split between all the loans I've been putting my entire payments towards one of the two loans at 6.8% to get them paid off more quickly. I just sent in a check for $400 towards E that isn't reflected in my numbers since the statement I'm looking at is from last month. Right now I'm trying to decide if I should take a large chunk of my savings and throw it towards the 6.8% loans. I want to get those paid off as soon as possible for obvious reasons and I was just thinking how if an emergency actually came up there's nothing I can think of that I can't put on my credit card. Right now I've got: Checking: $2559 Savings: $652 Credit Card: $132 After I pay off the card that's a total of $3079 I have available. My thinking is that I can take $2000 of that money and throw it at my 6.8% loans and cut them down a considerable amount. My rent + utilities only cost me about $400 a month and I could easily spend less than $150 a month on food + gas, so if for some reason I lost my job that'd be less than $600 a month to put on my credit card meaning my $3000 limit would last me 5 months. My rate on my card is 7.4% so the interest wouldn't be much more than what I'm already paying on my loans. Basically I'd be taking a gamble that I don't hit any sort of emergency, and my risk would be .06% more interest. At least that's my thinking, which could be incorrect. I'd like to hear why I shouldn't do this though, because I don't want to screw myself over trying to make more progress on my loans. Also if anyone has better suggestions for a plan to pay off my loans I'd love to hear em.
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Jan 27, 2010 14:19
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Grumpwagon posted:You can deduct student loan interest from your taxes You can only do this if you pay over $600 a year in interest. Last year I paid like $670 in interest, so this year I probably won't even break the $600 mark so that's a moot point. You said you woulnd't pay it with savings but didn't give any reason for that, care to explain? I'm looking for reasons not to do this, right now I'm not seeing any.
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Jan 28, 2010 11:37
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Deviant posted:That being said, I switched my car insurance today, so my payments there are down approximatley $60. What did you do to almost cut your payment in half?
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Mar 5, 2013 00:26
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Just want somebody to double check me on this. I just got an offer to upgrade one of my credit cards to the next tier of card that comes with an annual fee. This would bump up my rewards to 6% back at grocery stores and 3% back at gas stations. The annual fee is $95. Since I spend $200/month at the grocery store this makes sense to do right? By my math I'd be getting back $144/year just from that. Right now I get 3% cash back at grocery stores and 2% at gas stations. It also comes with a $150 sign up bonus for spending $1k in the first 3 months which I won't have a problem hitting. I feel like I should sign up for this for at least the first year then check how much cash back I'm receiving to see if I want to keep it for subsequent years. Josh Wow fucked around with this message at 13:14 on Nov 21, 2016 |
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Nov 21, 2016 13:11
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