I have been following this page and you guys give great advice so please id love the suggestions.
What I need advice on: what should I do to pay off my debts (particularly my private loan) as quickly as I can.
I have $33k saved up. Taking money out of my savings is always hard because I’ve worked hard to save up that much, but after looking at all my debt I decided I need to make a change.
Here’s my situation: $59k in private students at 4.1% ($680/month) $24k federal (currently 0% for covid) ($288/month) $10k car loan at 3.5% ($230/month)
I make $26/hour + OT so I’d say around $3200 after tax a month (but normally more bc of OT) and I get a bonus every year. Yearly ~$60k. And I put 6% of my paycheck towards my 401k.
I live at home, and have other smaller expenses like grocery shopping, subscriptions, etc. but the debts listed above are my main consistent monthly bills. I’m 24
After following this page I realized having a lot of savings doesn’t make much sense when I have a huge amount of debt, so I’ve begun throwing a lot of extra cash towards my private loans and with my federal loans on forbearance I’ve been taking that payment and putting it towards my private
My main question: how much of my savings should I take out and put towards my private loans? I’m torn between taking out a large chunk and wanting to keep my savings.
Any additional advice would be appreciated. Thank you :)
Submitted May 28, 2020 at 07:24PM by et437279 https://ift.tt/3esFSBd
