|
|||||||
 |
|
|
Thread Tools | Search this Thread | Display Modes |
09-05-2008, 03:17 PM
|
#1 |
|
Registered User
Join Date: Sep 2008
Posts: 3
|
Pay off or save?
Hello,
I'm just curious what kind of financial advice would be advised for my situation. I'm almost 28 yrs old with $12k in student loans left to pay off which are consolidated at 2.88%. I'm currently making payments of $125 which is slightly above the minimum. I make roughly $2k net bi-weekly. I'm also very close to having my car paid off, am currently renting and considering buying within the next year or two once I have more of a down payment. I currently just have $5k in a low-interest savings account and about $4k currently in checking, with no credit card debt. Should I pay my student loan off more aggressively or save money for a potential down payment in the near future? Thanks! |
|
|
|
09-06-2008, 01:39 AM
|
#2 |
|
Registered User
Join Date: Sep 2008
Posts: 2
|
I think you should continue to pay off your student loan. That way you'll build up a good credit history with more benefits down the line. Trust me, shaking of a bad credit history is not easy. I learnt several tips from this great site and now I've learnt never to let go of a steady payment plan. You can find many more answers for your queries on this site. Try it!
Last edited by Dingobiscuit : 09-06-2008 at 07:45 AM. |
|
|
|
|
09-06-2008, 03:44 PM
|
#3 |
|
Registered User
Join Date: Sep 2008
Posts: 3
|
Should I stick with my slightly above minimum payments of $125 or put a few hundred a month towards it?
|
|
|
|
|
09-09-2008, 04:33 PM
|
#4 |
|
Registered User
Join Date: Jul 2008
Posts: 46
|
If I had a student loan, I would pay it off as soon as possible, but I just hate being in debt.
|
|
|
|
|
09-09-2008, 05:53 PM
|
#5 |
|
No Disclaimer Necessary
Join Date: Feb 2005
Posts: 1,772
|
At a very nice 2.88%, I personally would pay nothing above the minumum required, but only if I thought I could do something better with the rest of my money (example - fund my Roth IRA, pay off higher-interest loans, earn a much higher APR on something else, etc.). If you are just going to blow what you don't use toward the loan, I would then pay higher each and every payment.
__________________
"A nickel ain't worth a dime anymore." - Yogi Berra |
|
|
|
|
09-09-2008, 06:10 PM
|
#6 |
|
Registered User
Join Date: Mar 2007
Location: Ohio
Posts: 324
|
I would be saving.
Make sure you are saving 20% of gross. Put 15% into retirement accounts (401k and Roth IRAs) and 5% into a savings account for the house. Let the money decide when to move, don't choose a date without seeing if you will have enough saved by that date.
__________________
Light is faster than sound. That is why some people appear bright until you hear them speak. |
|
|
|
|
09-15-2008, 04:41 PM
|
#7 |
|
Registered User
Join Date: Sep 2008
Posts: 3
|
Thanks for the advice!
I would like to erase debt ASAP, but with the low interest rate I guess I will go with near-minimum payments and look for ways to invest the extra money and not spend it. I just opened a high(er)-interest savings account online and am waiting for my 401k to kick-in at work so I'll try to take advantage of both of those and maybe look into a Roth IRA as well. |
|
|
|
|
09-30-2008, 07:33 AM
|
#8 |
|
Registered User
Join Date: Sep 2008
Posts: 5
|
In the UK the advice is almost always to invest the money elsewhere as opposed to paying off any student loans. Interest rates on student loans are the baseline here (I assume it's the same there) which makes it wiser to save the money in a high-interest savings account instead.
__________________
Check out the Wolf Writer for finance news and views. |
|
|
|
|
10-09-2008, 01:21 AM
|
#9 |
|
Registered User
Join Date: Sep 2008
Posts: 3
|
by paying off your loan money will make your good credit history. that would be very helpful for you to take more loan further
|
|
|
|
|
«
Previous Thread
|
Next Thread
»
| Thread Tools | Search this Thread |
| Display Modes | |
Linear Mode
|
|
Similar Threads
|
||||
| Thread | Thread Starter | Forum | Replies | Last Post |
| How to Save on Utilities | tbbjr | How Do You Keep More Cash? | 6 | 12-29-2008 02:44 AM |
| Save cash by brown bagging it and transferring the money | Unregistered | How Do You Keep More Cash? | 10 | 06-25-2008 10:36 AM |
| Save On Cars and Gas | savingadvice | Cars | 4 | 03-27-2006 05:01 PM |
| where to save down payment for 2nd home in? | douglas168 | Home and Real Estate | 7 | 08-25-2005 10:34 PM |
| The "You can always save one more dollar" game.... | sirshack | How Do You Keep More Cash? | 1 | 12-24-2004 01:18 AM |
SPONSORED LINKS
Powered by: vBulletin Version 3.0.1
Copyright ©2000 - 2009, Jelsoft Enterprises Ltd.
Copyright ©2000 - 2009, Jelsoft Enterprises Ltd.