Question

The one and only debt I have is my student loan for 14000. I'm seriously thinking about using all my tax money to pay it off. Is this a good idea? Help please! I'm currently on auto pay right now but I would love to see it go down drastically! The highest interest is 5. 7% It's split into different little loans but the total is 14000. Thanks

Answer 1

I think it’s a great idea! I got all my student loans paid of last year and it is such a relief. Now I’m tackling our other debts.  

Answer 2

If you have your EF all funded and everything else is squared away, I’d say go for it!  

Answer 3

That would be a great idea ✨

Answer 4

This would be the worst thing ever to do with your money Student loans paid off yet you don't have that much money in the bank.  

Comments

@yvoneyvonne but the point is to stop paying interest and throw that payment into saving so its working for her not the finance company. As long as she is paying interest she really is losing money so there is no savings that is just a visual imaginary comforter.  

Answer 5

I think it’s a great idea! If you don’t have any money in savings I could see maybe keeping $1k as an emergency fund, and then you’ll also have the extra money in your monthly budget that used to go to student loans available to put toward your financial goals, whatever those may be. Congrats!  

Comments

@meningitis totally agree with this!  

Answer 6

Do you have an emergency fund already of at least $1000? If so, then yes! If not, save at least $1000 and then put the rest towards your student loans.