Tuesday, October 14, 2008

Paying off Loans or Increasing Savings

Help me out. Its October 14th and I still have not decided what I am going to do with my 3rd paycheck of the month. I could use it to finishing paying off the balance of my smallest student loan ($1835.88) or I could use it to increase my emergency fund which as of right now has a balance of $2542.11. Which is more important??

until next time, think prosperous thoughts



Midwest Chick said...

I would probably use it to pay of the loan if I were you. I would get a great feeling from seeing that loan completely paid off. Good luck deciding!!

Fabulous Financials said...

I'd split it, not necessarily 1/2 and 1/2 but based on your long term goals.

The Monogamoney Duo said...

I think it depends on the interest rate you're getting on your student loan. If you're paying 2 or 3%, then it's not worth paying that off early. You can put the money in an online savings account like HSBC or ETrade and get over 3%interest right now.

Nasir's Mom said...

Hmmm...I would pay off the loan. Nothing like getting that off your chest.