Hey guys I just landed a job that pays 52K a year, it's non-exempt and has the following financial incentives:
- 6% Match 401k
- 6% Performance Bonus
Location: FL
After taxes, my take-home pay will be $3,600 and my total expenses are as follows:
$1,550 a Month (of which $500 is going towards a Consolidated Loan) - this does not factor in 6% Match, and Healthcare/vision/dental when I choose them.
Debts:
- $14,000 Consolidated Loan @ 16.49% APR that can be refinanced after 6 payments.
- $16,000 Students Loans @ 4.19% Average APR ($175 Monthly Payment has been paid by my folks)
Now I'm aware the Loan is pretty high, but that's the consequence of my financial immaturity when I started my adult life; I didn't have a grip on my finances, the initial CC offers lapsed, and my job hunt was unsuccessful for a while resulting in my debt racking up along with higher interest rates (24-27% APR).
The best choice I made was to consolidate my debt through a loan instead of a debt-payoff company. This has allowed me to maintain a combined credit limit of $21,000+, and it has raised my credit score back to excellent territory to qualify for better rates when the time comes. I was also told by the company, that after 6 payments, I have the option to refinance the loan, and have it based on my new financial situation (Score, and Income) to lower the Interest rate, which might be worth it taking into account the origination fee.
After accounting for non-debt expenses, I have a take home ranging from $2,400-$2,500. I've dedicated $500 a month to pay-off the loan, but was wondering if there is better advice on how to manage my finances. Even with the $500 payment towards my loan, that leaves me with $2000 a month.
Should I simply put forth the maximum amount of payment towards the loan, say $1800-$2200 a month towards it, or continue making payments for a few more months, and then re-finance the loan to then tackle it with larger payments?
Also, when I get to finish paying off my CC Debt Loan, should I put forth a higher payment towards student loans, or let 11 months of interest accumulate (to deduct it from my taxes) and make a giant lump sum in the last month of the tax year?
Submitted May 13, 2019 at 12:57PM by SaitonHamonoJutsu http://bit.ly/2VVJJ4l
