So, I have 51k in private loans at 3.26% I just refinanced at 700.25 a month.
Have 30k in federal loans on hold currently.
That is our only debt (my debt).
We collectively make 190-200k
We are 29 years old and have a combined net worth of ~250k-260k. That included retirement, home equity, paid off vehicles, etc.
We have a 1.5 year old and are planning to have another baby soon. My wife is a teacher and we want her to be able to take a few years off with the next baby.
To do that, we would need that 700/monthly student loan payment gone, so I can continue to contribute to retirement and our sons college fund.
Here is my plan. I have a 2003 Tahoe she has a 2019 VW. We paid 30k for the VW in December 2018. Vroom offered us 23,500 now for the truck.
Sell the VW, buy 1 more cheap commuter car, and sit on the money until September-October. Pay off the 51k in private loans, have around 5k left. Build our emergency fund back up to 15k by November-December. Save from December-June for a nicer car for my wife and the kids. End of June comes, we will be able to live comfortably off of 1 income. Going from 185-190k to 115-125k.
Does this sound like a good plan? Is it over kill? Truck has 32k miles, 7 year 110k warranty. But, with used car prices the way they are now, if we sell, that means we drove for 30 months at 200/month.
Thanks in advance. Looking forward to reading your responses.
Edit: if we don’t sell the car to pay the loans, I could cover everything monthly when she stops working, but would have to stop college savings, stop maxing my Roth and probably decrease my 401k, which I don’t think is the right move.
Submitted June 25, 2021 at 08:46AM by goodfight10 https://ift.tt/3wXYaEf
