Let's not sweep under the bed the reality of what you wrote in your other post back in March. You also owe your father over $40K as well...Very tempting and I have also considered this as soon as I had enough to write them both off but it seemed risky to not have a decent EF cushion. Paying them off will also lower my core monthly payments so the EF will grow pack to 6-8 months of expenses faster. I may do this in the near future depending on a few variables relating to my employment that I am not at liberty to discuss. Glad you suggested it though, I thought I would be crazy to do it.Good grief!Around $27k in SPAXX/FDLXX. I typically contribute around $200 per month into that as well to slowly grow that account. I've thought about rerouting those funds toward the debt once the interest on the MMF drops a little.How much is in your EF?
Write checks today to pay off your car loan and all of your student loans - a total of $22,800. You'll have $4200 remaining in your EF and can build it back up with what was going to all of the loans.
Why mess around carrying all of that debt? Just write the checks and be debt free by the middle of next week.
"If it had been a snake, it would have bitten you..."
CyclingDuo
viewtopic.php?p=7745641#p7745641Loans in Father's name:
Parent PLUS Loan 1:
Monthly Payment: $381
Interest Rate: 7.00%
Current Balance: $31,300
Parent PLUS Loan 2:
Monthly Payment: $131
Interest Rate: 7.6%
Current Balance: $10,485
You received some good advice in that thread. It's nice at age 25 to be thinking about maxing out your 401k, maxing out your HSA, maxing out your Roth IRA, having a 6-8 month stash in the EF, and what not - but your reality is that debt albatross around your neck. You'll have 30-40 years of working in front of you to turn your human capital into financial capital, but those loans need to be addressed.
Has anything changed since you wrote that back in March? Is your father going to take care of the parent plus loans on his own, or are you still committed to paying those off as you posted in March?My father took out parent plus loans to help finance college and I will be paying them back (we were told by a worker at the school that those loans could be transferred to my name, which is wildly incorrect). I just recently began navigating the financial world so at the time I had no clue whether or not the decisions I made were stupid or not. I am finding out just how stupid they have all been.
CyclingDuo
Statistics: Posted by CyclingDuo — Thu Jun 20, 2024 4:34 am — Replies 24 — Views 1777