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Hey everybody, I am wondering if I can get some of your opinions on how I should tackle the following debts.

1. Sallie May Student Loan
- Outstanding Balance: $1379
- Interest Rate: 6.8%
- Next Payment Due: 9/18/2015
- I paid a few larger chunks last year and I am paid ahead of schedule
- Minimum monthly payment: $50

2. Car Loan
- Outstanding Balance: $5612
- Interest Rate: 3.69%
- Minimum monthly payment: $116
- Usually I would never take out a loan for a car payment, but my wifes car died and she drives alot for her job so we needed something with low miles that was good on gas mileage.

3. Furniture Loan
- Outstanding Balance: $2137
- Interest Rate: 0% (36 months no interest)
- Monthly Payment $80


What order should I snowball these debts in? The Dave Ramsey method would say to tackle the smallest one first, which would be my Sallie Mae Loan. However, since that one is not to due receive payments again until 9/2015, should I hold off on that and start with the Furniture Loan?

What are your thoughts?

Truth be told I could have had the Student Loan or the Furniture Loan paid by now, but Uncle Sam said I owed taxes, so any money I was setting aside for debt repayment had to be temporarily diverted to pay my taxes :(
 

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I don't know what your monthly budget is for making these payments, but if possible I would put aside money to be able to pay the SM loan off as much as possible on day 1 so when it kicks in, you can pay all or most of it off. It's not only that it's the smallest amount, it has the highest interest rate. The furniture loan, there is no benefit to paying early given its interest free, just pay the minimum - the car loan is big with interest.

So I would do either of these:

Option A

- Pay the minimum for the furniture
- Pay whatever budget is left to get the car payment down as much as possible until Sept 2015 and see where you are then

or

- Pay the minimum for the furniture
- Pay the minimum for the car loan
- Put any spare in a savings account, and in Sept 2015 throw as much as possible at the student loan

Without knowing the length or what you have monthly to reduce debt, it's hard to say. I'd lean towards Option B, simply because any savings account is going to give you less interest than either loan - unless of course you have no emergency fund.
Option B

-
 
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I think it depends on how much you are able to pay every month, but I think I snowball it without thinking too much about the interest:

1. Sallie May. It is not a lot of money, there is no need to nurse it until 2015.
2. Furniture loan. If it makes you feel better, maybe you could save the 2137 in a separate savings account, and pay it down in a lump sum right before the interest kicks in?
3. The car loan is a substantially larger amount than the other two, and will take more time.
 

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I would probably do this order: the student loan, the furniture loan, then car loan.

Well, depending on how much you have to dedicate to debt repayment. You want to have the furniture loan paid off before the 0% finance charge ends. Lots of times (in the teenytiny small print), it will say that it is 0% if you pay it off before the 36 months. If you don't pay it off in that 36 month time period, they tack on all the interest that you would have paid for all that time.

If you can't pay off the student loan and the furniture loan before the 36 month time limit on the furniture, I would pay off the furniture first and then the student loan (and then the car loan).

If you can pay off the car, the student loan, and the furniture before the 36 months, then I would do them in this order: car, student loan, furniture. (This is interest rate order.)
 

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I don't know what your monthly budget is for making these payments, but if possible I would put aside money to be able to pay the SM loan off as much as possible on day 1 so when it kicks in, you can pay all or most of it off. It's not only that it's the smallest amount, it has the highest interest rate. The furniture loan, there is no benefit to paying early given its interest free, just pay the minimum - the car loan is big with interest.

So I would do either of these:

Option A

- Pay the minimum for the furniture
- Pay whatever budget is left to get the car payment down as much as possible until Sept 2015 and see where you are then

or

- Pay the minimum for the furniture
- Pay the minimum for the car loan
- Put any spare in a savings account, and in Sept 2015 throw as much as possible at the student loan

Without knowing the length or what you have monthly to reduce debt, it's hard to say. I'd lean towards Option B, simply because any savings account is going to give you less interest than either loan - unless of course you have no emergency fund.
Option B

-
I agree with this.
 

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Pay off Furniture Loan first - These usually require you must pay all the back interest if you do not have it all paid off by the deadline.
 
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