I have about $60k in loan debt over 3 lenders (Great Lakes, AES, and Wells Fargo). I've been advised that consolidating isn't a good option for me because many of my loans are at 3.4% and while many others are at 6.8%, consolidating would put me at a higher overall interest rating so I would end up paying more.
I'm currently residing in Vietnam, and my aim is to bring in $2k/mo teaching English as a foreign language. Because the cost of living in Vietnam is so low, I estimate my total monthly living expenses will be around $500/month (rent, utilities, moto rental, food, etc.). I will have some bigger purchases in the coming months, like purchasing a bike, paying for some dental work, and some necessary out of country travel to renew my visa. Provided I bring in $2k, this leaves me with approx. $1.5K per month. I currently have about $2.5K in the bank and no credit card debt. I expect to start having a full or close to full work schedule by July, and a permanent schedule by September after the summer camps end and the school-year classes begin.
My original plan was to put $1k towards my loans every month (right now, the minimum monthly payments total approx. $580 between the 3 lenders), approx. $500 towards my living allowance, and whatever is left over per month (if I don't end up making $2k/mo) into my savings. Once I start getting money coming in, I'd like to put whatever is left from the $2.5k into savings as an emergency fund so I always have money to cover a plane ticket back home should the need arise. At a rate of $1k/mo, it would take me approx. 5 years to pay off the loans with a savings potential of $30K. I'm wondering if this is a logical plan, or if I should be putting more towards the loans every month to get them paid off quicker. If not, what amount of money should I look at having in my savings account before I start throwing all my money at these loans? I don't have any immediate plans to return to the US, but should I do, I'd like to have some cushion in my bank account to cover the relocation expenses. I know people suggest 6-12 months of living expenses in savings, but that only puts me at $3K-$6K based on my expenses here in Vietnam, which would be shit should I need to relocate back home.
If I've missed any important information, please let me know. Any advice is appreciated.
Submitted May 27, 2017 at 02:32AM by arumberg http://ift.tt/2qt5wws
