Should I pay off my car at 3.4% to cash flow $366/mo and perhaps lower my insurance? 4 years left on the note.
Or should I pay off some crummy student loans at 6.8% which aren't due until 2021 but only cash flows me $158/mo?
Should I pay off my car at 3.4% to cash flow $366/mo and perhaps lower my insurance? 4 years left on the note.
Or should I pay off some crummy student loans at 6.8% which aren't due until 2021 but only cash flows me $158/mo?
Executive Decision wrote:
Should I pay off my car at 3.4% to cash flow $366/mo and perhaps lower my insurance? 4 years left on the note.
Or should I pay off some crummy student loans at 6.8% which aren't due until 2021 but only cash flows me $158/mo?
Pay off student loans, 7% is killer. Though if you don't have to pay until 2021 then index your fund. You'll make much more than 3.4% in mutual funds
Executive Decision wrote:
Should I pay off my car at 3.4% to cash flow $366/mo and perhaps lower my insurance? 4 years left on the note.
Or should I pay off some crummy student loans at 6.8% which aren't due until 2021 but only cash flows me $158/mo?
So your bonus was in excess of $17K?
Normally I would say the student loan, but go with the car. Then take the 366 that was going to the car and apply it to the student loan. You are already spending the money so you are not going to miss it.
Another option is to run the numbers to see how much it saves you to put $17K toward the loan principle on the student loan. That might be a better deal in the long run.
Pay down the smallest one first, making minimum payments on the rest. It's called the debt snowball and it works.
Stop thinking in terms of monthly "cash flow" and start thinking in terms of BUILDING WEALTH. You're in debt - GET OUT.
Obviously the higher one. There is literally no reason to pay off the lower one first
Dave Ramsey wrote:
Pay down the smallest one first, making minimum payments on the rest. It's called the debt snowball and it works.
Stop thinking in terms of monthly "cash flow" and start thinking in terms of BUILDING WEALTH. You're in debt - GET OUT.
They are both exactly the same amount. I have tackled all my smaller student loans already using the debt snowball method.
This is a difference between terms and interest rate only.
Having an extra $366+/mo to throw at the student loans seems attractive.
If you are in the market to buy a house, you should consider paying down debt if you are going to have a debt to income ratio issue.
Otherwise, invest it. I would put it into a CD and let it sit for a year or two to see whether there is a big stock market correction. I am sure there will be a big dip if Sanders or Warren is elected.
Luv2Run wrote:
Executive Decision wrote:
Should I pay off my car at 3.4% to cash flow $366/mo and perhaps lower my insurance? 4 years left on the note.
Or should I pay off some crummy student loans at 6.8% which aren't due until 2021 but only cash flows me $158/mo?
So your bonus was in excess of $17K?
Normally I would say the student loan, but go with the car. Then take the 366 that was going to the car and apply it to the student loan. You are already spending the money so you are not going to miss it.
Another option is to run the numbers to see how much it saves you to put $17K toward the loan principle on the student loan. That might be a better deal in the long run.
Correct. After taxes and contributing 6% to my 401k (also matched by my employer) my take-home is about 18k to play with.
Executive Decision wrote:
Should I pay off my car at 3.4% to cash flow $366/mo and perhaps lower my insurance? 4 years left on the note.
Or should I pay off some crummy student loans at 6.8% which aren't due until 2021 but only cash flows me $158/mo?
Vegas baby! WOOOOOOOO!
https://www.youtube.com/watch?v=Ow7YCgkdN3YWhy would you pay off a student loan? Aren't the all the Dummy's in contention for the Dum nomination going to wipe out student loan debt? Put it towards the car in the unlikely event one of those idiots wins.
Cough over half of it to the government in taxes then buy yourself a new TV and a decent dinner. 17K doesn't go far if you live in a semi-interesting city and take home a decent living wage.
Executive Decision wrote:
Should I pay off my car at 3.4% to cash flow $366/mo and perhaps lower my insurance? 4 years left on the note.
Or should I pay off some crummy student loans at 6.8% which aren't due until 2021 but only cash flows me $158/mo?
Why would your car insurance be lower because you paid off your car?
You don't need to have collision.
I assume the interest on the student loan is not deferred. If you have a better way to make greater than 3.4% or 6.8% then put your money there. Otherwise dump it on your student loans.
HMMMMMMMMMMMMMMMMMMMMMMMMMMMM wrote:
You don't need to have collision.
If he has a car loan now, and is going to spend his bonus to pay it off, what makes you think dropping collision coverage would be a good idea? He would basically be self insuring any damage to his car - so the next week when he totals it, he is without a car. And without a bonus.
People who don't have collision on their cars are people who can afford to replace the one they have, either because they have plenty of money or because their car is worth so little it doesn't matter.
I'm putting in a pool!
Hookers and blow. WTF is wrong with you kids?!
But a new car