Hi!
I’m a very debt-averse person and try to be debt free. I have a federal student loan that I could pay over a couple months if I pay it down aggressively (I have a couple others but those are of bigger amounts so I want to start with my smallest loan and work my way up- they’re all similar in interest except for 1 that’s higher). It’s a 5% interest rate for a loan of $3,750.
There are two negatives I could think of for paying it early:
1.) I have a young credit history, since I’m 22. It’s one of my older accounts- will paying it (and effectively closing it) decrease my average age of credit even more or will it still be taken into account? I’m going to need to rent another apartment in a few months and want my score as high as possible.
2.) I realize you shouldn’t pay debts first if investment return is higher than interest rate. I feel like 5% interest is a little high to prioritize investing. What do you think?
Thanks, I appreciate your help.
Submitted December 23, 2017 at 01:09PM by clementinejuice987 http://ift.tt/2l2W3v6
