I just finished my studyand hope people here can give me advice on how to pay off my study depth, which totals at about 13.000 Euro and has an interest rate of 4.3%
I'm about to accept a job offer which gives me a generous enough salary, and my partner earns about the same working only 20 hours per week. My salary will appearantly be increased by a per diem allowance for the first 8 months while we'll be away from home with hardly any personal belongings.
We have an imergency fund of 20.000 Euro and the same amount again in a 5.0% interest account (about the highest you can get here, 1.2% of interest goes to the state as tax
). We still have to pay tax and a few other high amounts from that. Furthermore, we'll move internationally a few times within the coming two years and need decent reserves for that even though my employer will pay most of it. Furthermore, we haven't build up any pensions yet even though we're in our 30s already.
- Paying off all at once doesn't seem to result in a reduction of the total but I'll pay less interest. On the other hand we lose a large chunk of our funds
- Start in two years and pay the minimum connected to my salary, as the lender, a state institution suggests
- pay off a large monthly amount once we know how much we need for a living. For the first 8 months we could pay off more money due to the per diem allowance.
- start now but with smaller amounts so we can save the spare money for our pension (if we finally understand how to invest decently)
What are your opinions on these different options?