CoffeeMoney
Dryer sheet wannabe
I HATE owing money and knowing that interest on my student loans is compounding daily. I am fortunate enough to only have $4,000 in loans in my name but I have also permanently taken over a big chunk of money of a Parent Plus loan that my mom took out for me.
Here's the breakdown of my loans:
$19,444.25 at 8.25% monthly due = $302, paying $500
$1,674.81 at 6% paying $100
$2,2,43.03 at 4.5% paying $50
Total = 23,362.09
I have been working for only 1.5 years. Living in New York City is not cheap so I have not been able to build up my savings too much.
Here's what I currently have in the bank:
Checking/saving - $14,500
Investements - $4,717.52 (includes investment/life insurance, 401k, and 1.5k in LendingClub semi liquid)
Given my income and expense budget, I am left with about +$900 per month.
At the momet my net worth is negative $4,000. I use my credit cards lightly but pay them off every month and don't plan on ever owing interest on them.
Should I just take a big chunk of what I currently have and bring down my loan amount by a few thousand? My instict tells me to pay off my smallest loan($1,674.81) but since it is not the one with the highest interest rate I know it's not the right move.
Given my breakdown, what is a good amount to put towards paying off my mom's Parent Plus Loan right now? Is something like $5,000 a reasonable amount and then continue to make monthly payments to bring it down steadily? I can only hope that I get a nice bonus end of this year + tax return to pay off another big chunk.
As you can see, I am really in a hurry to pay it all off! Please help figure out the smartest way to do this.
-C
Here's the breakdown of my loans:
$19,444.25 at 8.25% monthly due = $302, paying $500
$1,674.81 at 6% paying $100
$2,2,43.03 at 4.5% paying $50
Total = 23,362.09
I have been working for only 1.5 years. Living in New York City is not cheap so I have not been able to build up my savings too much.
Here's what I currently have in the bank:
Checking/saving - $14,500
Investements - $4,717.52 (includes investment/life insurance, 401k, and 1.5k in LendingClub semi liquid)
Given my income and expense budget, I am left with about +$900 per month.
At the momet my net worth is negative $4,000. I use my credit cards lightly but pay them off every month and don't plan on ever owing interest on them.
Should I just take a big chunk of what I currently have and bring down my loan amount by a few thousand? My instict tells me to pay off my smallest loan($1,674.81) but since it is not the one with the highest interest rate I know it's not the right move.
Given my breakdown, what is a good amount to put towards paying off my mom's Parent Plus Loan right now? Is something like $5,000 a reasonable amount and then continue to make monthly payments to bring it down steadily? I can only hope that I get a nice bonus end of this year + tax return to pay off another big chunk.
As you can see, I am really in a hurry to pay it all off! Please help figure out the smartest way to do this.
-C