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Wednesday, December 14, 2005

To pay off my student loans or not?

This month I made a one-time $3,000 payment to my student loan account and now I have about $4,400 left. I can either leave the loan balance as it as and continue making minimum payments. I will have the loan pay off by March 31st, 2006. Or I can just pay off the whole balance this month and not have to worry about it next year. The money will come from the 0% APR credit card promotion, and I can either invest that money or pay off my student loans. The loan interest rate is at 3.87%.

10 Comments:

At 12/14/2005 05:54:00 PM, Blogger Mathieu said...

I'd invest half of the money in mid-risky stocks and use the rest to pay another big chunk of the student loan

 
At 12/15/2005 11:22:00 AM, Blogger JLP said...

How long are you at 0%? Will you be able to pay off the credit card balance before the 0% interest period is over?

For most people, this would be a risky strategy.

JLP

AllThingsFinancial

 
At 12/15/2005 11:37:00 AM, Blogger Smarty said...

The 0% lasts until Dec 2006. I still have a year on it, and paying it off by Dec 2006 shouldn't be a problem. In fact, it won't be a problem, so there's no risk on this.

I'm leaning towards paying off the entire student loans because I don't like the idea of student loans hanging on to me through next year.

 
At 12/15/2005 12:01:00 PM, Anonymous bad credit advice said...

I say that you use half of the money to invest and the other half to pay your student loans.

With only $4,000 left of student loans, you shouldnt have to worry about it that much.

The truth of the matter is that you will have that loan paid off in the next year or 2. Don't sweat it for now.

 
At 12/15/2005 12:42:00 PM, Blogger savvy saver said...

Don't use the CC balance transfer to make the student loan payment. What if you lose your job or you have a very large unexpected expense and can't pay the CC off right away? Too risky. Make extra payments, but don't borrow from Peter to pay Paul.

 
At 12/15/2005 12:53:00 PM, Blogger Smarty said...

Paying back the CC won't be a problem. I have cash reserves in my savings accounts.

 
At 12/28/2005 12:20:00 AM, Anonymous Anonymous said...

Pay half off now then take the remaining half and go to A.C. put it on Black 24 and let destiny take you to your next chapter in life.

 
At 12/28/2005 12:31:00 AM, Blogger Smarty said...

Why Black 24? Is that the winning number?

 
At 12/28/2005 08:38:00 PM, Anonymous Anonymous said...

Black 24 is always the winning number. The voices in my head are dead-on.
Besides, it would be fun.

 
At 12/28/2005 11:27:00 PM, Anonymous Anonymous said...

...and also, I am a complete stranger that came upon your blog by chance online. How cool would it be to be able to tell a story to people the rest of your life on how you won that $70,000 to invest and get massive passive income!

BLACK 24 SMARTY.

 

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