I'm 25, single, and make $38k/year.
I have $14.5k in savings and $11k in student loan debt. Should I pay off my debt in full? That will only leave me with $3.5k in savings but I'll save over a thousand dollars interest.
What would you do?
Rule of thumb: if you can get more in yield than your interest, invest, otherwise pay up.
At least 5k would be sensible. At this age you should be able to save those 5k in at least 3 months. And then kill your debt
Good job security
My loan is divided into several subloans. One loan is 6.8% the others are like 3.8%
I've been paying off the 6.8% loan first, but I'm only obligated to pay $110/month towards the loans (I pay much more than that tho)
You should keep 3 months of expenses in your bank account. It is tempting to pay it all off now but you may need that money in the future. I would pay as much as I could until I had the 3 months expenses in my bank account.
great interest rate on that loan OP
you must be from burgerland or something
pay off 2/3 of it, then you will have a better safety net, if you don't need it you will be able to pay off the remaining third in a few months
I live in America, the wealthiest nation the world has even seen. Personally I feel like my interest rates were a bit high, especially the 6.8% one (which is the biggest of the subloans) but thank you.
Unless you were being sarcastic, in which case SHUT UP.
The only time you EVER consider not paying off a debt quickly is if your savings are earning more interest than you're paying on the loan. And that (which does happen occasionally) is not going to happen again for a very long time.
Pay off the loan.