For context I am 25, living at home with parents for the next 14 months (my self set deadline). I don't hate it at home am happier and have a better mental image of myself when I'm living on my own. I pay them cheap ($500) rent and am living as frugal as possible. I make $95,000 and have $2,600/mo. "extra" after all taxes, 401k, expenses, minimum loan payment, etc. I'm likely getting a pretty good bonus and raise this year as well.
I have $11,000 emergency savings (4.5%) and only an additional $1,000 (4.5%) in savings (been putting it all to loans).
I have a private student loan ($61,000, 2.7% $835/mo.).
I know the interest rate on the loan is very low, but having that huge debt and high payment really weighs me down. I feel like it's useless debt and will get in the way of me buying a car or home. Messing around with this debt vs savings calculator also shows that the interest gained from savings wouldn't outweigh the interest lost on the loan unless I save almost all of my extra money ($2,250+/mo.) and therefore take 4+ years to payoff the loan.
So...is it a stupid idea to put 100% of my extra income to this loan, and just knock it out ASAP? If I get a decent bonus and raise this year there is even a chance it can be gone in 14 months.
Submitted August 07, 2023 at 06:39PM by DiabolicDiabetik https://ift.tt/Ry8c6iS
