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I'm 25, single, and make $38k/year.
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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?
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You can deal with the interest just fine. Better to keep your emergency fund.
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I would not pay it off in full if I were you, but I might pay like 5k of it down.
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>but I'll save over a thousand dollars interest.

The answer is pretty obvious.
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Pay the debt
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jesus christ OP pay that shit off NOW. $3.5K is an incredible safety net. if you saved up that much before you'll be fine. living debt free is absolutely worth it
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>>16880902
Is that 38,000 gross or net?

What is your job security at the moment?

What is the interest rate on your loan and what is your monthly payment?
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>>16880902
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
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>>16880958
$38k net
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)
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>>16880961
You mean get 5k in savings and then kill debt?
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>>16880971
Crush the 6.8 now. Perhaps it all since you are secure. 3.5k should hold you over for any immediate emergencies, you can then rebuild your nest egg even faster +$110 per month
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Would 3.5k be enough to cover bills, rent, and food if you happen to lose your job for a couple months? If so I would pay it off.
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>>16880956
>$3.5K is an incredible safety net
you're poor and/or stupid.
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>>16880980
Yeah I'll crush the 6.8 for now. That sounds like a good idea. Then continue dumping into the other loans without the high interest rate.
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>>16880982
Barely, I could probably last 3 months on 3.5k. That's why I'm iffy about paying it all off
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Pay it all off now my god
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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.
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>>16881001
If you can't land a gig in 3 months your clearly not trying hard enough.
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>>16880977
Kill 5k in loan, save 5k in the next 2-3 months and finish killing that debt unless you can get higher yield from investing that money.
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>>16880902

Pay it off in full. 3.5k is enough to serve as an emergency funds while you keep saving.

I wish I was in your spot. I've got 11k and owe 28k
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>>16881240
I like it. I can't save 5k that quickly but I'll work on doing something like this, thank you
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>>16881272
How long ago did you graduate, and with what degree?
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>>16880902
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
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>>16881284
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.
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I'll tell you what you should not do. Ask 4chan what to do with your money
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>>16880902
Ask bogleheads instead of 4chan.
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If you can afford it, I would encourage you to pay it off. There's no point in having it hanging over you if you can afford to pay it off, especially if it's accruing interest.
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>>16880902
pay student loan ASAFP. savings will go down now but its paid and out of your life. and you can restart saving for the better things in life.
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>>16880902
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.
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