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Sorry if this has been asked before but my husband and I are at an impasse as to how to deal with my student loans. I'm from the UK, and in the UK you don't start making payments until you earn over X amount. My debt is approximately $35,000 and I accrue 1.6-3% interest per year. I just got my first job, so will have to pay approximately $100/month on my loan. Which is possibly less than the interest i'm accruing per year. After paying my share of expenses, I will have roughly $900 left over, and I plan to use that to make the minimum payment ($100) and then save the rest with the intention of making a lump payment to pay off a large portion of the debt in a couple of years.

My husband thinks that I should invest my savings and keep paying the minimum payment for multiple years (10-20) and then use the money I got from my investments plus my savings to pay off my debt in full. I know that I have $900/month to spare now, but in the future when we have higher car payments, I want to go back to school and we have a mortgage, I might not be able to save anything.

Because my loan has to be paid through a UK bank account, for me, getting rid of my debt and not having the hassle of transferring money to a UK account is worth the loss I might take in potential earnings through investments.

Is it financially irresponsible to want to pay off my debt ASAP? Should I be saving my money and investing it? Or is it smarter to save the money whilst I know it's available and use it to pay off my loan so I don't have to think about it?

Thanks in advance.



Submitted August 15, 2017 at 12:30AM by Kaycat19 http://ift.tt/2vztRXi

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