Wednesday, July 29, 2009

Day 28 of LSM: July 28th

Total spent...$0! Yay!!!

Only days to go, and hubby has to fill up on gas since our hiking trip gobbled up most of his, but that shouldn't take more than $30.

I'm going to pick your brains for some input. As you can see from the sidebar, we are a few grand away from paying off my student loan.

When hubby starts back up at school we can take his checks and use them to pay off the remainder of the loan, by hopefully November. We can then focus on saving everything for a down payment (and a car). My interest rate is only 1.65%, so we'd *only* be paying $28 in interest before it's all paid. By April (when we have a CD come to term) we will have about an additional $9,500 saved.
We can continue what we have been doing with my normal payments plus the snowball from the payments on hubby's loan, and save hubby's paycheck for a down payment, with a rate of 1.4%. By doing that, my loan won't be paid off until Sept. 2010, paying almost $58 in interest, but we would have saved an addition $11,500k for the down payment by April.

Is it worth being able to save an extra $2k, but still have to make payments? It will be such a relief to be finished with payments and have no debt, but it will also be nice to purchase a house and have lower monthly payments. I have an idea what we are going to do, but I'd love to hear what all of you think!

Starting: $30.95
Ending: $30.95


Live Simply- Live Well said...

I suggest getting the loan paid off as soon as yall can.
Gazelle intensity!

Brooke said...

the numbers make better sense in the 2nd situation, but that's not always the best indicator.

my gut instinct is to get it paid off asap - but then again we're playing the numbers game by keeping our $2K appliance payment at 0% financing when we have enough to pay it off now.

Dawn said...

I'm with Brooke - the second scenario makes more sense, but if you would feel better to get the debt paid off, then you should do it. Go with what feels right to you.