Mortgage Forum

Mike

I've graduated in college last year December. And, started paying off my student loans in February. I didn't consolidate though. The interest rate on the $25000 loan is 7.5% . I'm paying about $165 a month. I'm currently making $40000 annually and have no credit card debts yet. There are no car payments too. But I have maxed out my IRA for 2007. I do have a 401k with employer contribution. I believe ein frugal living so don't spend much on daily items.i know if I can continue to pay the student loans, I will be able to deduct interest from my taxes. But I need to save also. So should I pay off student loan asap and get out of it or pay the minimum while deducting taxes for the nest 10-12 years and save the rest?

rachael24

I would personally pay off my student loans and then concentrate on saving. Especially depends on your interest rate. You have to crunch the numbers and see what is more profitable.

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Recent college graduate with a credit consolidation concentration.

Zino

Personally i'd clear my debts and wipe the slate clean.

When you have no overheads the savings will become easier, also try and lock your savings in to a plan so your not only paying no more bills but earning interest on your money.

Personally i don't like being in debt or owing money, a home mortgage is necessary for most people myself included.. But that typically appreciates in value, so is an investment. Student or Personal loans on the other hand, i like to wipe clean asap.

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Mike

Thank you very much, it looks like paying off the debts it is then.

micahelm

There is nothing better than cleaning your debts (student loans) first.

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