Okay, so I'm currently in about 30k of debt between my Dh and my student loans.. and neither of us has our degree yet :(
Due to circumstances that were unavoidable with my Dh's career field, I had to withdraw from college and take a five year break. We're still in the middle of our five year break, and I've paid off my student loans by almost half.. meaning I owe about 14k. My Dh started college and due to the fact he got loans for two full years (even though he withdrew at a year and a half) he now owe's 19k. He has two loans 10k and 9k. Their payments are small, only about $100 a month. My 14k loan has a $200 montly payment because it's interest rate is higher.
I'm planning to pay back my loan first, because of the higher interest rate and then we'll probably get a second car around the time that loan is paid off (we currently own a car, that was the first payment I concentrated on and paid off).
I can pay off this 13k loan in a years time really easily, but it will bring our savings down significantly.
How much do you suggest a family of four keep in savings? Right now we have about 10k in total, but my Dh's computer just broke, and that's including our checking account.
thanks for the advice if you have any to offer :)
Asked by Anonymous at 11:13 AM on Jul. 6, 2011 in Money & Work
Answer by yesmaam at 11:18 AM on Jul. 6, 2011
Have you ever heard of Dave Ramsey? He is a really good financial person. I would not touch the savings.
Answer by My3Ez at 11:35 AM on Jul. 6, 2011
Answer by ZanderandBella at 11:27 AM on Jul. 6, 2011
Answer by rkoloms at 2:06 PM on Jul. 6, 2011
6 month living expenses in savings at all times no matter what. More if you feel your jobs are unstable. Rather than paying extra on the actual loan put any extra money into the savings and then when the amount in savings above and beyond the amount set aside for 6 months living equals the amount still owed on the student loan go pay it off. You will lose a little on interest, but you won't find yourself in a bind.
Answer by LoveMyDog at 3:10 PM on Jul. 6, 2011
Answer by tasches at 4:53 PM on Jul. 6, 2011