knockin' back some juice boxes (dianak) wrote in lwym,
knockin' back some juice boxes
dianak
lwym

Awesome.

Alrighty. I haven't posted here in a while. After years of debt, I finally reached a bit of happiness in that my debt is under $50,000 (OMG YAY!) and I have a question for y'all.

You are working toward getting your debt completely paid off. Soon, smaller bills will be disappearing and the money toward those could go toward student loans ($43,000@4.375% fixed) or toward savings (5% variable, although I haven't seen it lower than 3% since i opened it in 2002). Somewhat regular savings deposits are already made.

Would you use the extra money from those bills (roughly $500 a month, could be more) toward building savings up quicker and begin to invest, or paying off the loans quicker? Fiscally speaking, the dollars and cents say to invest and pay only the monthly payment on the loans, especially since they give a tax benefit and will eventually decrease down to 3.125%, but I do NOT want to pay on them for 20 years if I can take a few years off by paying an extra few bucks now while I can. I am paying a wee bit more on them as it is already, almost $20/month by rounding the payment up to a nice round $300. On the flipside, when it comes time to buy a new car, it'd be nice to not have to finance it. So, yeah, conflict.

Don't own a home, and investing in one is a few years away, probably financed mainly by my bf, as he's pretty much debt-free w/a PhD (whew). Car is paid off, and a few hundred is generally in my checking for emergencies in addition to the savings. Once that $7k is paid off, my bills will be rent, utilities, food, gas, cell phone, insurance, totaling about $750-800/month if I'm extravagant that month with eating out/entertainment. So, what would you do, and why?
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