Ok I need some advise. My current plan is to pay off the remaining balance on one of my student loans ($645) and save up an emergency fund. I think this is a good idea but the impatient side of me wants to just pay off the other student loan right away since it will only take 2 more months (end of June). So should I stop paying extra on any debt and save up an emergency fund? I would like to have $1000 - $2000 saved. Or should I continue on with the debt? And is it wise to tackle the other student loan or the credit card first? I think it just bothers me that I owe so much on that silly CC and I want it gone. But I want it all gone anyway!
A reminder of my debts: Student Loan $645, Student loan $1180, CC $3750 and one other loan that I am not too concerned about at the moment. Those 3 debts are my main concern and having an emergency fund. Once the $645 student loan is gone I will have right around $500 a month extra to either save or pay on debt.
What do you think?
Hmm. Okay, this is not the conventional PF advice, but I paid aggressively on my debts and put $100/month in my savings until it added up to an E-fund. Luckily I didn't have any emergencies I couldn't absorb into my budget along the way. It's a risk, but it worked out for me. I would pay off the $645 loan just to have it done and then work on the credit cards, since I assume that interest rate is higher? Just my two cents...that's how I did it and things are going well for me.
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