Hi everyone.
If you've seen my
journal or
gauntlet thread I have very minimal student debt that I've been aggressively paying off. You can see where I sit below, where last month I took out all the 6.8% loans in one go.
Total Current Balance:
$20,882.98 $13,437.48
Loan Type | Amount Owed | InterestDirect Sub Stafford Loan - $5,493.42 - 3.4% Fixed
Direct Unsub Stafford Loan - $2,264.26 - 6.8% FixedDirect Sub Stafford Loan - $4,526.45 - 4.5% Fixed
Direct Unsub Stafford Loan - $2,403.79 - 6.8% FixedFederal Stafford Loan - $3,544.16 - 5.6% Fixed
Federal Unsub Stafford Loan -$2,541.50 - 6.8% FixedSo doing pretty well and I've planned on paying off the 5.6% and 4.5% this next pay check which is the 15th of this month. It makes sense to take those out as the interest rate is pretty low. But is it worth it to take out that 3.4% loan instead of investing? I have enough cash to take out all the loans right this second but wouldn't leave me any emergency cushion room.
I'm currently trying to max my 401k and IRA, save for a house downpayment, might need to buy a new car/motorcycle in the near future as my current jeep is not a good DD (I carpool right now) will be moving by the end of the year to a new place and will do my best to make sure I have work/gym/groceries nearby.
So the question is to be or not to be debt free now or chip away at that lowest rate loan over time and invest now?
If you need anymore information please ask.