Hi all!!
I am new here. I like what I see and would appreciate any help that you guys might be able to provide.
My question for the board is...which debt to pay down first? And how should we pay down our debt? Should we continue contributing to retirement accounts and put less towards debt? Or should we go mad crazy on the debt and pay it down as soon as possible?
Here are our debts:
Student Loan 1 - 35k @ 2.6%
Student Loan 2 - 20k @ 3.0%
Student Loan 3 - 10k @ 3.5%
We also have a 1st and 2nd mortgage @ 5.75 and 7.375% respectively.
Both my wife and I have Roth IRAs and my wife has a 403b all of which is invested at Vanguard.
We are in our late 20's and are in the 25% fed tax bracket. We have an emergency fund, no credit card debt and no car payments.
If these were your debts, would you:
a. pay off the student loans first (smallest to largest)
b. pay off the loans with the highest interest rate (which I think would be the 2nd mortgage)
c. pay off some of the student loans and max out the retirement accounts?
Thanks in advance for your thoughts.
gmt
I am new here. I like what I see and would appreciate any help that you guys might be able to provide.
My question for the board is...which debt to pay down first? And how should we pay down our debt? Should we continue contributing to retirement accounts and put less towards debt? Or should we go mad crazy on the debt and pay it down as soon as possible?
Here are our debts:
Student Loan 1 - 35k @ 2.6%
Student Loan 2 - 20k @ 3.0%
Student Loan 3 - 10k @ 3.5%
We also have a 1st and 2nd mortgage @ 5.75 and 7.375% respectively.
Both my wife and I have Roth IRAs and my wife has a 403b all of which is invested at Vanguard.
We are in our late 20's and are in the 25% fed tax bracket. We have an emergency fund, no credit card debt and no car payments.
If these were your debts, would you:
a. pay off the student loans first (smallest to largest)
b. pay off the loans with the highest interest rate (which I think would be the 2nd mortgage)
c. pay off some of the student loans and max out the retirement accounts?
Thanks in advance for your thoughts.
gmt