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Loan update

May 30th, 2021 at 03:30 am

Current student loan balance:

Current balance: $12,867.40

Current interest: $32.77

Total: $12,900.17

 

I am looking seriously at potentially paying this off in the coming month. My usual payment is about $2300 and I already planned to pay another $5,000. Which would bring me down to under 5K. I am tempted to pay this off from savings. The market is really high now anyway to invest and it would be a big psychological milestone to finish paying off this debt!

 

Otherwise work has been pretty busy, which means less time for spendy projects/hobbies at least! Today I spent about $45 total for groceries at the farmer’s market and grocery store and saved 10 cents/gallon on gas with a grocery points reward card.

5 Responses to “Loan update”

  1. mumof2 Says:
    1622349261

    Well if you can you would be saving on interest and then it is gone...if you are comfortable doing that then do it

  2. Lots of Ideas Says:
    1622393725

    The question to ask yourself is whether $12,900 of the money you have invested (or whatever you would take from savings) is earning more than $32 per month - or whatever the interest amount would be after the $2300 or $5500 payment. If the savings is sitting in a low interest savings account, yes, pay it off. But if you would be taking it out of the market, I personally think that if the Jobs Plan passes, the market is going to rise, so I wouldn’t sell to pay off a loan that you have done such a great job getting control of the interest. Watch out for tax implications of anything you sell.

    But there is a benefit to mental comfort, and the amount is small enough that you can give that weight too!

  3. LuckyRobin Says:
    1622404545

    I would do it if it left you with enough savings to cover a decent sized emergency only. When you get towards the end of a debt like this the urge is strong to just be done with it. Is this your last debt? That would tip the scales for me if I were in your situation.

  4. crazyliblady Says:
    1622417079

    That is awesome news! Congrats! Can I ask what your secret is to paying off so much at a time?

  5. rob62521 Says:
    1623078589

    Personally, I would pay it off and then put some of the money you had been paying on a regular basis back into the savings account to make up for what you used. I think the benefit of having the loan finished would be wonderful. Good job on getting it paid down.

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