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Just Graduated and New Job

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Money Talk > Credit & Loans

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Avino
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Just Graduated and New Job  Reply with quote  

Hi All,

I haven't posted in a bit, but I do have a question I would like some advice on. I just graduated from College in August and just recently got a job as an IT specialist making $60k/yr. I live with my mom and don't have any rent, but I do have some credit card debt, a personal loan debt, a car loan and then my student loans to pay off. My plan is to pay off all my credit cards first as they have the highest interest rate and I owe about $10k, then I plan paying off my car loan about $7k and then my personal loan of about $9k. Should I prioritize my debt by lowest to highest, and pay off the lowest first and roll those payments into the higher, or should I focus on my higher interest debts first?

Then next, provided i can pay off all this debt in the next year, once I get on to paying off my school loans, I have thought about figuring what the maximum I can contribute to my student loans is, then only making the minimum payments on my student loans and putting the difference into some mutual funds or stocks. I do have a 401k I have been funding since I was 18 so I have a bit of experience with stocks and funds, but my goal is that at some point my investments may start generating enough income to pay for the loans and then I can focus on putting money towards the investments and letting those pay off the loans.

Is this a good plan, or is there a smarter way to work on getting rid of my debt, how should I prioritize the payments, what are some investments I should look at that generate income such as dividens. I want to get off to a good financial footing.

Thanks

~A.

Also blogging @ avinos2cents.blogspot.com
Post Sat Nov 04, 2006 7:20 pm
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Avino
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Great thanks for the advice, I will do as I wrote and focus on paying off the high interest debts. I wasn't thinking about capital gains so your right on diverting income from an investment to pay off a low interest debt, specially since some of my loans have rates as low as 2.75%.

Thanks.

~A.

Also blogging @ avinos2cents.blogspot.com
Post Sat Nov 04, 2006 8:01 pm
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Avino
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 Reply with quote  

quote:
Originally posted by muneepenee
jobs in guvt stats
yuze wile yu hav it...it mae last 0 sekonds.


What does this mean?

~A.

Also blogging @ avinos2cents.blogspot.com
Post Mon Nov 06, 2006 2:09 pm
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rockhound
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Location: West Virginia
a possible translation  Reply with quote  

quote:
Originally posted by Avino
quote:
Originally posted by muneepenee
jobs in guvt stats
yuze wile yu hav it...it mae last 0 sekonds.


What does this mean?


I think (and this is only my read, mind you) that he is looking at your $26,000 in debt and advising you that as long as you have this good-paying job, and are living at home with few expenses, your priority needs to be to pay off all that debt and save as much money as possible because good-paying jobs are often fleeting, and can disappear regardless of what the "government statistics" say about the low unemployment rate. You're apparently already working out a plan to pay off the debts, and that is good.
Post Mon Nov 06, 2006 9:28 pm
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JCook
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I don't want to speak for Coaster but I think you misunderstood his reply. He told you to pay off the smallest debts first and I would agree with him. You said then that you were going to pay off the high interest debts as though that is what he said.

As Coaster said, paying off the smallest debts first will give you accomplishments quicker and sput you on to clear up all of your debt quickly.

Make sure you get rid of all of this debt before you take on any more debt. Once you do this you can invest like crazy.
Post Tue Nov 07, 2006 3:07 am
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Avino
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Cash: $ 24.80

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LOL... you guys are great. And yes I do agree, a nice paying job can be gone from one day to the next, so paying off my debt is a high priority, I am starting with the lowest debt first. Once I have paid off the money I owe, I will have freed up all these annoying monthly payments I currently make on my debt, which is about $232 for the car, $200 for a personal loan, another $200 or so in credit card debts. Which will then be $600 or so more dollars available a month than what I have right now.

My job does offer up to 8% of my salary in matching contribution into a 401k, so I will be contributing the 8% to get the 8% matching contribution, and then focusing the rest into paying off my debts. Does this make sense? Its a before tax contribution, and I figure that I will still have enough of a paycheck left over to stick to my plan.

I feel more of a comitment to stick to my plans now that I have made these postings. Thanks to all of you.

~A.

Also blogging @ avinos2cents.blogspot.com
Post Mon Nov 13, 2006 3:03 am
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