The Finances and Debt Thread

[Ob1]

My loan is right at 4% I do believe (roughly 100k left). Her student loan interest averaged around 7% with 65k left.

Pay off the 7% while making minimum payments on the 4%.

 

[The Process God]

My second interview went well with the other market director. She then had me interview with a tenured Branch Manager for a third interview this past Friday. I imagine that was possibly my last interview since, from what I've read, market director interviews are the highest level position that you get interviewed by for something like the branch manager position, and I have been interviewed by both market directors in the area. I'll keep you all updated on what happens. They've been mentioning banking positions in terms of seeing if I am open to it, and I'm not accepting a banking position. I hope they don't come to me with an offer for one.

 

[David.]

,

 

[Zog]

Looking to have my student loans paid off in March. Also looking at a new job with a pretty significant increase. After I max my IRA, where should I be putting my extra money?

My house?
Down payment for a new house (kid on the way)?
Pay off wife loan?
Open up an IRA for her (she has 401k)
Or just put money in various funds?

Do you have a 401k available at your own company? Sounds like you have some other obligations but you should at least put in enough in the 401k to get your company’s full match, if they offer a match.

Putting $5500 in an IRA is good, but it’s not enough to be able to retire at 65 on in most cases.

 

[David.]

Ps the sep Ira allows self employed people to contribute 25%of their salary

 

[KI4MVP]

Without knowing the amount and the years left, I can't say for sure, but you're likely on the right path by paying off the higher interest rate debt first.

Some people advocate for the Debt Avalanche payment structure (IE what I/you suggested) and some believe in what they call the snowball approach (IE paying off the smaller principal debt first to get one loan out of the way). Simply put, paying off the higher interest rate loan, will save you money in the long run. However, some people like the psychological benefit of paying off a loan. If that is you, and it will keep you on track, then pay off whichever has the smaller principal balance first (not my suggestion).

Read here: https://www.investopedia.com/articl...avalanche-vs-debt-snowball-which-best-you.asp


I personally would input the amounts into this and decide from there:

https://studentloanhero.com/calculators/student-loan-prepayment-calculator/

But without knowing anything, again, I'd say debt avalanche is better because (outside of the psychological benefits) it will pay off your total loans faster.

short version what what Ob1 said, if you like math, always pay of the highest interest loans first and the minimum to the rest.

The only exception is if you're struggling to make minimum payments each month, then clearing out a payment to offload some stress can be worth it. Otherwise it's really bad math to go for the psychological benefit of clearing out a lower interest loan. If anything it's psychologically better to get that highest interest loan cleared out first.

 

[The Process God]

Got an email from one if the market directors with which I interviewed. I will be getting a response no later than the week after next. That kinda sucks because it's Sunday, so I have to wait up to three weeks for an answer. She did mention that she has to complete some other interviews. I'll keep you all updated. In the meantime, credit card debt is down to 5.4k (if you don't include my card I pay off monthly). My promotion at the beginning of the year has been helping because of a higher base salary and higher bonuses.

 

[David.]

I got approved for another gig economy job and I should be at 80k as a 1099 with almost no taxes due to write offs.

I could pay off that 63k in a couple years.. Even less if I downgrade my apartment

 

[bigfoot5415]

Do you have a 401k available at your own company? Sounds like you have some other obligations but you should at least put in enough in the 401k to get your company’s full match, if they offer a match.

Putting $5500 in an IRA is good, but it’s not enough to be able to retire at 65 on in most cases.

Unfortunately no. Was gonna open one in my wife's name, but also looking at other retirement options. That's likely where a large portion of this money will go.

Any thought?

 

[David.]

Goddamn, opened up a secured credit card and a share secured loan and my credit went from 586 to 621 literally in a week.

 

[Ob1]

Unfortunately no. Was gonna open one in my wife's name, but also looking at other retirement options. That's likely where a large portion of this money will go.

Any thought?

Does she have a 403b? Ability to participate in an HSA?

 

[DJTJ]

Goddamn, opened up a secured credit card and a share secured loan and my credit went from 586 to 621 literally in a week.

Solid jump, dude. I’m anal about my credit score because I’m a late credit haver and still don’t have a credit card (don’t trust myself). I’ve been hovering between 755-760 for like 3 months and I’m reaaaaal close to grabbing a credit card.

 

[David.]

Solid jump, dude. I’m anal about my credit score because I’m a late credit haver and still don’t have a credit card (don’t trust myself). I’ve been hovering between 755-760 for like 3 months and I’m reaaaaal close to grabbing a credit card.

How the hell did you even get there without kne? Student loans and car?

 

[DJTJ]

How the hell did you even get there without kne? Student loans and car?

Zero interest car loan, no student debt bc of scholarships, and I moved like three times in college and three times post college so all of the apartments and utilities etc.

Then a line of credit for furniture and a mortgage.

 

[gourimoko]

Zero interest car loan, no student debt bc of scholarships, and I moved like three times in college and three times post college so all of the apartments and utilities etc.

Then a line of credit for furniture and a mortgage.

That's why...