Quote:
Originally Posted by FedExpress50
The interest rate averages out to about 5%. I will pay the higher interest loans off initially so the remaining loans should all be 3 or 4 percent. By paying off half right now, the monthly payment going forward will go from just a bit over $400 to $200. This just makes sense right now and will make things financially easier in the future. I will still be able to save a good amount each month for 5-6 months after paying off half the loan so that will give me a chance to increase my savings.
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That $17k initial payment is essentially 42 monthly payments @ $400.
42 months is a nice buffer to have if SHTF.
The interest saved in paying it off instantly (about $2500??) is quite low in the 'grand scheme of things' (i.e. only 6 monthly payments).
I'm all for paying off debt ASAP and if you don't 'need' the cash on hand, go for it, but otherwise... hmmm