I need an opinion...

[rachelMcK]

Ok, so here is the situation. Our CC's are paid off so we have 3 major debts. The first is what is left of DH's student loan (7500 which is a bank loan), then two of mine (15000 bank loan and a 10000 government loan). Dh's loan is on a payment plan which will have it paid in 4 years at a $90 payment every two weeks. Right now, I'm only paying interest on my bank loan and as off the end of this month I will be making monthly payments to my gov loan to pay it off by 2030 (I know, it will be paid off long before that). All the interest rates for each loan are the same.

Here's my plan. Because DH's loan is on the payment plan, I think we may just leave it to be the last one to be paid off, because its getting paid off anyway. The first loan I will start to pay off is the 15k, this is because it open in my online banking so I can just transfer money onto from home (much easier). This is if the bank doesn't tell me I need to put it on a payment plan like Dh's loan. The next loan would be the 10k, I would just save up like 2500, when I get that, call them to take the money. Then on to the next one which should be down to about 5000+ by then. By doing this, we'd have the first loan paid by next april (09), the gove loan would be down to 8000 by then so it could be paid by december 09 and then the last loan which would be down to 3000 by that time could be paid off in march of 10. So 2 years and a bit and we'll have 34 K paid off.

Does any one see something I may be missing? This is just a plan so if you have any other ideas, let me know!!

Thanks

[sdrjeolsen]

Sounds like a good plan to me. Just one question, why wait to have 2500 to put on the 10K laon before doing so? You would save some interest by paing in smaller increments but more often. Unless that is the excess of an EF or something, then I would handle it just the way you are planning.

I say go for it! It would be great to pay all that off in 2 years! Good luck!

[rachelMcK]

Oh, yeah, that was just a number I pulled out. Everytime I call them, they seem to be angry (loan people I guess) so I would rather call them less often...lol. But it depends, I may do $1000. I like the bigger payments because it looks like I'm accomplishing more

[LexTysMommy]

I would call with any amount of payment. It is their job. You know? Knock down some interest.

Sounds good to me other than that. Good job thinking this out!

[Kitten20]

I would also call with any payment (heck, even $50 LOL). That is what they get paid to do. Also I would be worried that DBF & I would be too tempted to spend it if we let it sit around. Great plan though!