| Pay off Student Loan or HELOC first? |
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NewlywedB10
New Poster
Cash: $ 0.45
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Joined: 18 Aug 2011
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| Pay off Student Loan or HELOC first? |
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I have roughly the same amount of debt in both my HELOC and in my student loans ($17,000 each). They both also have interest rates of 3.5%.
My question is, I have enough money to pay one of them off right now, but which one do I choose to pay off first? Or do I do something different?
Thanks!
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Thu Aug 18, 2011 12:59 am |
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NewlywedB10
New Poster
Cash: $ 0.45
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Joined: 18 Aug 2011
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Income is about $90k.
Payment on the student loan is $135/mo, with fixed interest.
Heloc is interest only right now and is variable rate, but current finance fees are around $50/mo.
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Thu Aug 18, 2011 7:29 pm |
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littleroc02us
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Personally I would get rid of the student loans first because god forbid something happens, they aren't bankruptable.
Risk comes from not knowing what you're doing. (Warren Buffet)
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Thu Aug 18, 2011 7:55 pm |
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clydewolf
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| Re: Pay off Student Loan or HELOC first? |
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quote:
Originally posted by NewlywedB10
I have roughly the same amount of debt in both my HELOC and in my student loans ($17,000 each). They both also have interest rates of 3.5%.
My question is, I have enough money to pay one of them off right now, but which one do I choose to pay off first? Or do I do something different?
NewlywedB10,
It sounds like you have no mortgage on your home.
If that is true, then pay off the HELOC first. This will give you a place to live, and an asset you may be able to sell later.
If you have a mortgage and a HELOC, then get rid of the student loans first.
Because paying off the HELOC gets you nowhere while still having a mortgage.
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Sat Nov 03, 2012 8:11 pm |
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