I'm 24 and have about 2-3 years of rent saved up in my emergency fund, and about $20k in my Roth 401(k). I also have about $17k in student loans, $11k @ 3.4% and $6k @ 5%. My credit is in the "Excellent" range so while I would like to use a bonus I recently received as well as my tax return to pay off the loan @ 5%, my fear is I would damage my credit. Is this a reasonable consideration? If so, is it worth it to pay the loan off, considering it's a guaranteed 5% savings per year (and I'd be unlikely to generate a similar return with a similar amount of money)?
As a side note, I will likely continue to take the standard deduction on my taxes each year since my income stream and tax situation is pretty simple. At present therefore, I am not benefiting from the student loan interest deduction. Thanks in advance!
Submitted March 05, 2017 at 01:06PM by djunkmailme http://ift.tt/2lOCnKn
