How do I balance debt v. investing in my situation

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Rocky_Mtn_Expat
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How do I balance debt v. investing in my situation

Post by Rocky_Mtn_Expat » Thu Jan 29, 2015 5:31 pm

36
Married (wife is 35)
2 kids (3 and 1)
Combined family income: 95,000

Total retirement assets: 195,000 (divided mainly into my 403B and Roth, and her Trad IRA).
Total cash savings: 26,000

Student loan debt (wife): 29,000, 6.8% fixed APR
Car 1: 10,000 at 1.9% APR
Car 2: 15,000 at 0.9% APR
Neither car is under water, they're both new

No credit card debt, paid off every month.

I hate debt, particularly the student loans because they have such a high interest rate. I find myself listening to that Dave Ramsey guy on the way home. I don't totally buy his "ignore the interest rate" philosophy and that all debt sans mortgage is evil, but at the same time I'd love to be totally debt free. There are days when I feel like carving out 50k from our retirement nest egg and just wiping out all the debt. I don't want to completely deplete our cash reserves because we have a PPO health plan that can cost us almost 9k per year if we have a lot of health care needs that year.

At 95,000 per year we don't make a lot, but we live rent free, and I think we can easily bank 2,000 to 2,500 in savings per month. So if I took, say 30,000 out of retirement savings to eliminate debt, it would probably take around 12 months to recoup the "loss."

(And please don't castigate me for buying two new cars since I said I "hate debt." One of our previous cars was too small for our family and the other one had been driven until it had no life left--they weren't luxury purchases).

dsmil
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Re: How do I balance debt v. investing in my situation

Post by dsmil » Thu Jan 29, 2015 8:27 pm

I dont think a little debt hurts, especially if you are making payments and still have $2k left over every month.

DSInvestor
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Re: How do I balance debt v. investing in my situation

Post by DSInvestor » Thu Jan 29, 2015 8:34 pm

Welcome to the forum.
Rocky_Mtn_Expat wrote:At 95,000 per year we don't make a lot, but we live rent free, and I think we can easily bank 2,000 to 2,500 in savings per month. So if I took, say 30,000 out of retirement savings to eliminate debt, it would probably take around 12 months to recoup the "loss."
I would not recommend taking money out of retirement saving to pay down the debt. Money that is withdrawn from Traditional retirement accounts is subject to Fed and State income tax. Early withdrawal penalties will apply since you're under age 59 1/2. You'd need to withdraw a lot more than 30K from retirement accounts pay off 29K of student loans, extra income tax and penalties. Roth IRA allows for withdrawal of contribution basis without tax and penalty but you can't put the money back in after it has been removed.

I suggest attacking the debt with cash flow after your retirement contributions are made and maxed out. Make the minimum payments on the car loans and chip away at the student loans. If you wife has multiple loans at the same 6.8% rate, attack the one with the smallest balance first. This will free up cash flow as each loan is eliminated.
Last edited by DSInvestor on Thu Jan 29, 2015 8:40 pm, edited 1 time in total.
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Twins Fan
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Re: How do I balance debt v. investing in my situation

Post by Twins Fan » Thu Jan 29, 2015 8:38 pm

I wouldn't dip into the retirement accounts for it. With $2000 to $2500 a month extra and maybe some of the $26k cash (maybe $5 - 6) you should have that student loan knocked out in no time.

I used the snowball method to knock out my debt back in the day and I was a fan. But, I also didn't have a 1.9% or 0.9% rate on ANY of my debt. I would definitely go after the student loan first in your situation.

Rocky_Mtn_Expat
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Re: How do I balance debt v. investing in my situation

Post by Rocky_Mtn_Expat » Thu Jan 29, 2015 8:55 pm

Good point...it will definitely jack up my taxable income if I take money out of the tIRA to pay off the debt. And I try to be pretty diligent about reducing my tax basis. My income last year was 63k and my taxable was 32k. Most of the 2k per month that I speak of comes in the form of a max contribution to my 403B and an additional mandatory contribution to my pension.

So what about taking my E-fund down to 20K and then foregoing all 403B contributions until the loans are paid? Is that too extreme? Or I could cut the retirement contributions down to the traditional 10-15% of gross income, which, factoring in the mandatory pension contribution, would mean putting in about $800/mo instead of ~$1,500, and free up about $700/mo to pay down the loans.

Kind of stinks how I'm going to do all this and then owe a lot more in taxes...will lose the interest deduction and the taxable income will go way up in 2015. Thanks for incentivizing me to pay down that debt! :)

Rocky_Mtn_Expat
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Re: How do I balance debt v. investing in my situation

Post by Rocky_Mtn_Expat » Thu Jan 29, 2015 9:01 pm

DSInvestor wrote:Welcome to the forum.
Rocky_Mtn_Expat wrote:At 95,000 per year we don't make a lot, but we live rent free, and I think we can easily bank 2,000 to 2,500 in savings per month. So if I took, say 30,000 out of retirement savings to eliminate debt, it would probably take around 12 months to recoup the "loss."
I would not recommend taking money out of retirement saving to pay down the debt. Money that is withdrawn from Traditional retirement accounts is subject to Fed and State income tax. Early withdrawal penalties will apply since you're under age 59 1/2. You'd need to withdraw a lot more than 30K from retirement accounts pay off 29K of student loans, extra income tax and penalties. Roth IRA allows for withdrawal of contribution basis without tax and penalty but you can't put the money back in after it has been removed.

I suggest attacking the debt with cash flow after your retirement contributions are made and maxed out. Make the minimum payments on the car loans and chip away at the student loans. If you wife has multiple loans at the same 6.8% rate, attack the one with the smallest balance first. This will free up cash flow as each loan is eliminated.
I just read this a little more closely, may have misinterpreted. I don't have a lot of cash flow right now after maxing the contributions. I probably will have a little more because 2014 was an expensive year with med bills due to the birth of a baby, but basically I put away a max 403B contribution each month ~$1,500, and another $400 goes into my pension fund every month. At tax time I scrape together what I can for lump sum contributions to my roth and my wife's tIRA. I should do better at budgeting this out, but I haven't.

I think I can scrape together a little more cash above the 403b & pension to put towards the student loans, but it won't be a lot. If I want to do a lot more than the $250 monthly payment (which won't pay them off til 2031) and attack them with gusto, it has to come at the expense of retirement contributions for a temporary period of time.

Twins Fan
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Re: How do I balance debt v. investing in my situation

Post by Twins Fan » Thu Jan 29, 2015 9:16 pm

Oh gotcha, I thought you meant an extra $2k or so after all contributions. Do you get a match at all in the 403b? Definitely contribute enough to get that if you do.

Some would say keep maxing out retirement accounts. Some would say 6.8% is a pretty high rate and cut back on retirement contributions until that's gone. I would be one to say cut back and pay that down. You did say you hate debt, so.... It can be a personal decision and whatever one is more comfortable with.

I have to ask, if you guys make $95k and live rent free where does all your money go? Even with a couple kids you should be doing pretty well with no rent or mortgage. May be time to go through all the bills and expenses and see what can be cut back or cut out.

bdpb
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Re: How do I balance debt v. investing in my situation

Post by bdpb » Thu Jan 29, 2015 9:58 pm

Rocky_Mtn_Expat wrote: Total retirement assets: 195,000 (divided mainly into my 403B and Roth, and her Trad IRA).
Total cash savings: 26,000

Student loan debt (wife): 29,000, 6.8% fixed APR
As others have said, don't take from your 403b or tIRA, but you should make an effort to eliminate the 6.8% debt.

Tell us more about your savings contributions and how much is in your Roth and how much of it is previous contributions.

Assuming 26k in cash is your EF and you have Roth contributions exceeding that, you could use the 26k to pay down the 6.8% debt and set aside the same amount in your Roth as your EF by putting it in something similarly safe (like short term bonds or CDs). Roth contributions can be withdrawn tax and penalty free at any time. Save the previous loan payments to refill your cash EF. As you do that, release the set aside EF in your Roth back to your long term retirement savings.

If your Roth contributions are as much as 29k, you can take the other 3k directly from your Roth to pay the remaining 3k.

Ostentatious
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Re: How do I balance debt v. investing in my situation

Post by Ostentatious » Thu Jan 29, 2015 10:13 pm

Ditto - Don't borrow from retirement money. You can slow down your retirement savings while you pay down your debts.

WHL
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Re: How do I balance debt v. investing in my situation

Post by WHL » Fri Jan 30, 2015 10:59 am

95k is not a lot of money? :oops:

Don't go crazy trying to pay everything off immediately. Don't forego matches to your retirement plans. DO stop your frivolous spending and put it towards debt.

burnout454
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Re: How do I balance debt v. investing in my situation

Post by burnout454 » Fri Jan 30, 2015 11:43 am

For the record, Dave Ramsey does NOT recommend taking money from retirement accounts to pay off debt (only to avoid foreclosure or bankruptcy).

Rocky_Mtn_Expat
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Re: How do I balance debt v. investing in my situation

Post by Rocky_Mtn_Expat » Fri Jan 30, 2015 1:07 pm

I don't get a match on the 403B. My pension is the only retirement savings vehicle that has an employer "contribution," as it were.

To the previous question, my Roth IRA is worth 43,000. I have it all in Wellington. A big chunk of that is contributions, so yes, that's sort of an additional E-fund.

As far as expenses, these are some of our biggest ones:

Son's preschool - 7,000/yr
Childcare (nannies), for when we are both working - varies, but on average - 5 or 6,000/yr
Health Care - varies, because we're on a PPO with coinsurance, but last year with birth of new baby and some post-natal testing we had to do, we hit the cap - 10,000, if not more (hoping this goes way down in 2015)
Car payments - 6,000/yr
Her student loans - 3,000/yr

Our monthly cell phone bill is $150 for both of us and monthly cable/landline/internet bill is also about 130. I don't think I can cut much here. She needs the landline and high speed internet for work, and it saves us a pretty nominal amount to reduce the television portion of the package.

We live in the bay area so it's not the cheapest COL in the country by any stretch. State and local taxes, gas (I drive 27,000 mi/yr in commuting), utilities, etc.

We do eat out quite a bit (nothing fancy, lots of take out). But I do think that's where we may be able to save. This is mainly due to incredibly busy schedules and we're always just trying to do whatever is fastest. But I'm working on savings in this area.

Thinking of a hybrid plan:

Reducing E-fund down to $20,000. That should reduce the student loan debt to ~$22,000. Reducing 403B contributions to $500/mo and trying to put at least $1,500/mo toward the loans. $22,000/$1,500 = 15 month payoff schedule. If I could get to $1,800/mo we could do it in a year.

retiredjg
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Re: How do I balance debt v. investing in my situation

Post by retiredjg » Fri Jan 30, 2015 1:20 pm

Rocky_Mtn_Expat wrote:So what about taking my E-fund down to 20K and then foregoing all 403B contributions until the loans are paid? Is that too extreme?
Right answer, but it is too extreme in my opinion. I would not forgo ALL 403b and or IRA contributions, but reduce it. And I would not pay off the cars at the expense of funding your 403b - you can almost certainly make more than .09% and 1.9% by investing your money rather than paying off those loans early.

The snowball does work well for many people. However, it is not particularly suited for your situation where you have some debt that NEEDS to be paid off (because you may not get 6.8% if you invest) and some that does not really NEED to be paid off early.

Twins Fan
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Re: How do I balance debt v. investing in my situation

Post by Twins Fan » Fri Jan 30, 2015 1:58 pm

Rocky_Mtn_Expat wrote:Thinking of a hybrid plan:

Reducing E-fund down to $20,000. That should reduce the student loan debt to ~$22,000. Reducing 403B contributions to $500/mo and trying to put at least $1,500/mo toward the loans. $22,000/$1,500 = 15 month payoff schedule. If I could get to $1,800/mo we could do it in a year.
I like that plan.

Yeah, living in a high COL area and child care can do it... and, 27,000 miles/year! Yikes, that's commuting! Keep track of your spending for a few months and I bet you would see that a lot of money gets spent on things just because you can afford it... like eating out all the time and probably similar stops here and there or buying this and that. You may find you can save a nice little chunk cutting out the extras.

mmmodem
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Re: How do I balance debt v. investing in my situation

Post by mmmodem » Fri Jan 30, 2015 1:58 pm

If I were you, and I am pretty close, I live in the Bay Area with a 4 and 1 year old making less than you at $86k a year, age 36.

Re-Categorize your Roth IRA as your EF
I would take $25k from your savings and knock out the student loans. $1000 is all you need when your income is that high and you have a Roth. Your cars are new so you won't have to worry about break downs. Any medical emergencies will bill you months later and accepts credit cards.
Two more months is all it takes to come up with the rest of the amount to completely knock out the student loans.
Set your 403B to matching limits.
Max out Roth IRA $11k
Then pay off Car 1.
Keep Car 2 as long as possible, interest low enough that it makes more sense to put in your retirement instead.
Switch to HSA, HMO, or HRA at work

I'm not going to "castigate" you but I am going to show you contrast. Our monthly cell phone with two smart phones is $80 (T-Mobile, unlimited everything, 2.5 gb high speed data, reception not as good as other carriers but works fine at work and home where I am 90% of the time). We have high speed cable internet 105mbits at $67 (Comcast). Cable TV add on is $10 and up, we declined. Land line is free using Google Voice and Obihai box. Birth of my youngest cost me $2500 paid from FSA which is more like $2000. I am also a busy professional, I bag lunch. Sometimes, I am too busy so I keep an emergency cup noodle in my car. Sometimes, I just want to eat out, and I budget myself for that once a week. It's not all or nothing. I drive 25k miles a year in a Prius plug in. Not only is it fuel efficient but it gets me into the carpool lanes. The trunk is so deceptively large, it eclipses some small SUVs in utility. I fit a 65" projection TV in there for example with the seats folded and the hatch closed. No one is buying it because fuel costs are low and Prius are ugly so Toyota is giving me a free 0% interest loan.

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Re: How do I balance debt v. investing in my situation

Post by retiredjg » Fri Jan 30, 2015 2:29 pm

mmmodem wrote:Re-Categorize your Roth IRA as your EF
I think this idea is worth considering.

It appeared you were thinking of raiding your 403b to pay off the loans and that's not a great idea for all the reasons mentioned. But if you exchanged say $15k to $20k in the Roth IRA to short term bonds or money market to function as your emergency fund, you could apply the entire current emergency fund to the 6.8% loan. Add on a few months worth of big payments and you'd be finished with that loan entirely. Again, I'd keep the car loans, or at least the lower interest one, and pay them on schedule.

Then as you build up a "real" emergency fund with your savings each month, you would exchange cash in the Roth IRA back to Wellington or you could actually leave the emergency fund in there and just keep $1 - $2k on hand.

This gets the debt paid off quickly, preserves the space in your Roth IRA (although you would lose some growth) and never places you in a position of not being able to handle an emergency.

Rocky_Mtn_Expat
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Re: How do I balance debt v. investing in my situation

Post by Rocky_Mtn_Expat » Fri Jan 30, 2015 2:39 pm

mmmodem wrote:If I were you, and I am pretty close, I live in the Bay Area with a 4 and 1 year old making less than you at $86k a year, age 36.

Re-Categorize your Roth IRA as your EF
I would take $25k from your savings and knock out the student loans. $1000 is all you need when your income is that high and you have a Roth. Your cars are new so you won't have to worry about break downs. Any medical emergencies will bill you months later and accepts credit cards.
Two more months is all it takes to come up with the rest of the amount to completely knock out the student loans.
Set your 403B to matching limits.
Max out Roth IRA $11k
Then pay off Car 1.
Keep Car 2 as long as possible, interest low enough that it makes more sense to put in your retirement instead.
Switch to HSA, HMO, or HRA at work

I'm not going to "castigate" you but I am going to show you contrast. Our monthly cell phone with two smart phones is $80 (T-Mobile, unlimited everything, 2.5 gb high speed data, reception not as good as other carriers but works fine at work and home where I am 90% of the time). We have high speed cable internet 105mbits at $67 (Comcast). Cable TV add on is $10 and up, we declined. Land line is free using Google Voice and Obihai box. Birth of my youngest cost me $2500 paid from FSA which is more like $2000. I am also a busy professional, I bag lunch. Sometimes, I am too busy so I keep an emergency cup noodle in my car. Sometimes, I just want to eat out, and I budget myself for that once a week. It's not all or nothing. I drive 25k miles a year in a Prius plug in. Not only is it fuel efficient but it gets me into the carpool lanes. The trunk is so deceptively large, it eclipses some small SUVs in utility. I fit a 65" projection TV in there for example with the seats folded and the hatch closed. No one is buying it because fuel costs are low and Prius are ugly so Toyota is giving me a free 0% interest loan.
I appreciate the info, it's nice to get a comparison outlook from somebody who matches our situation so closely.

-I could look into switching to T-Mobile. We're on Verizon. I think it's $143/mo for our 2 phone family plan.
-I know about Google Voice but I haven't heard of an Obihai box. I will research that. I'm more than happy to decrease the amount of money we give to Comcast.
-Medical plan is not likely to change. I could save by switching to an HMO style plan but my wife's got a couple of chronic health issues (nothing major), but significant enough that she likes having the provider choice and freedom that comes with a PPO. Similarly, my 1 yr old daughter is basically healthy but had to have some additional testing and is still being watched for a couple of issues. We liked being able to go to whichever specialist we want. But if everything's smooth in 2015 and we don't have much other than regular checkups for the kids, the PPO we're on will be pretty cheap.
-My car is a Civic. Not as fuel efficient as your Prius but 30/39 mpg.

jnet2000
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Re: How do I balance debt v. investing in my situation

Post by jnet2000 » Fri Jan 30, 2015 3:15 pm

Personal finance is just that.

Personal.

If you hate debt. Pay it off if you have the money outside of a tax deferred account. It doesn't have to make sense if it helps you sleep well at night. You can always direct your future contributions toward the debt and you should be able to wipe out the student loans fairly quickly.

I too hate debt like you and refuse to use it.
"You really don't need leverage in this world much. If you're smart, you're going to make a lot of money without borrowing" Warren Buffet

mhalley
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Re: How do I balance debt v. investing in my situation

Post by mhalley » Fri Jan 30, 2015 3:27 pm

One option you might consider is Financial Samurais debt payoff system based on interest rates:
http://www.financialsamurai.com/pay-dow ... t-fs-dair/
His calculation (called FS-DAIR) is this: FS-DAIR: Debt Interest Rate X 10 = Percent Of Savings Allocated Towards Debt Pay Down
So at 6.8 % you would put 68% of savings towards debt, 32 towards Savings.
Mike

ZiziPB
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Re: How do I balance debt v. investing in my situation

Post by ZiziPB » Fri Jan 30, 2015 4:02 pm

Post your budget and related questions as a case study on Mr. Money Mustache forum. The members there are fabulous at finding ways to pay off debt and optimize your savings and budget. http://forum.mrmoneymustache.com/ask-a- ... dy'-topic/

bdpb
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Re: How do I balance debt v. investing in my situation

Post by bdpb » Fri Jan 30, 2015 5:11 pm

I would not give up tax deductible 403b contributions in the state of CA (probably, 9.3% tax rate) before I gave up Roth IRA contributions.

If you insist on keeping the cash in your taxable account, withdraw previous Roth IRA contributions to pay of that extremely high 6.8% debt.

You are not maxing out all your tax preferred accounts, so you aren't losing anything by withdrawing the Roth contributions.

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Re: How do I balance debt v. investing in my situation

Post by Meg77 » Fri Jan 30, 2015 5:19 pm

You are doing great! It would make absolutely zero sense to take money OUT of a retirement account to pay your debt. If it's bothering you so much then cut your contributions down to 10% and pay the extra toward the loan until it's gone. You can't go wrong either way between maxing out a retirement account and paying off a 6.8% loan early. Both are great options, but you can't reach both goals overnight at the same time.

I will say that $26K seems like a lot in cash if your fixed expenses are as low as they seem, what with not paying any rent. You could take $6K and put it on the loan tomorrow just to jump start. Although if the rent free thing is a short term deal, you probably want to be building cash to buy your own place, or keep it high enough that it would cover 6 months of "real" expenses, assuming you did have a rent payment.

Bottom line, don't stress about this. You're doing great. Another idea is to see if whoever is letting you live rent free wants to lend you $26K at 3-4% so you can cut your interest charge...
"An investment in knowledge pays the best interest." - Benjamin Franklin

iskey
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Re: How do I balance debt v. investing in my situation

Post by iskey » Fri Jan 30, 2015 6:02 pm

Not sure if you can do this but you might want to look into transferring some or all of the student loan debt via a no fee balance transfer. Chase Slate is offering 0% balance transfer for 15 months with no balance transfer fee. The only thing is, I don't know if you have to transfer another credit card balance or if any debt is eligible.

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Re: How do I balance debt v. investing in my situation

Post by Rocky_Mtn_Expat » Fri Jan 30, 2015 8:04 pm

We can live here as long as we want, although eventually I would like to move elsewhere and buy our own home.

Ok, I just moved $2,300 over from savings to the loan. That completely wiped out the smallest of the 4 remaining ones (they're consolidated into one bundle). I'm going to shuffle some stuff around in Feb and then do another big transfer in March. Feels good to see the balance go down.

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Re: How do I balance debt v. investing in my situation

Post by Watty » Fri Jan 30, 2015 11:17 pm

Rocky_Mtn_Expat wrote:Son's preschool - 7,000/yr
Childcare (nannies), for when we are both working - varies, but on average - 5 or 6,000/yr
.....
We do eat out quite a bit (nothing fancy, lots of take out). But I do think that's where we may be able to save. This is mainly due to incredibly busy schedules and we're always just trying to do whatever is fastest.
It would be good to run the after tax numbers to see if you are really making a lot of money by having both of you work. You might come out ahead financially if one of you became a stay at home parent for a few years.

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Re: How do I balance debt v. investing in my situation

Post by mistike » Sat Jan 31, 2015 12:03 am

I would also recategorize the Roth to my EF, pay down the loan with the cash (maybe keeping a couple $1000s if it makes you nervous), and be aggressive in order to pay off the rest as fast as possible without jeopardizing my retirement.

Then your plan to put redirect your 503b contributions to the loan, minus $500, is a good one.

Also, I would take a good long look at my budget. From what you told us, you could probably free up $200 a month easily, just by switching your mobiles to T-Mobile (provided you're not locked up in a 2-year contract with Verizon), and cutting the cable for a while. Sounds tough but believe me, once you don't have it anymore, you start wondering why you needed it so bad and how not worth the price it is. Then cut out going out for a while. Bag your lunch if you have to. Google voice might be the solution for you to get rid of the landline. Or skype.

If you knock off most of the loan with your current cash, then we're talking only a few months. Might be a good exercise too, you may surprise yourself. You do sound like you have some wiggle room in your budget. Find it. It's all a question of priorities.

If it helps, count the interests you're not paying. Seeing it may be what you need to keep you going.

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Re: How do I balance debt v. investing in my situation

Post by Dandy » Sat Jan 31, 2015 9:56 am

If you use all or most of your monthly excess and a small amount of your cash you will be out of the student loan debt by the end of the year. That would be better than not contributing to your retirement account or using your a lot of your cash. With 2 kids having some cash for emergencies is a good idea.

Be thankful that that having no rent and being out of student loan in a year. You are much better off than most. It should be smoother sailing after that. Continue to hate debt but don't that hate blind you into making hasty or questionable financial moves.

mmmodem
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Re: How do I balance debt v. investing in my situation

Post by mmmodem » Sat Jan 31, 2015 12:16 pm

Rocky_Mtn_Expat wrote:We can live here as long as we want, although eventually I would like to move elsewhere and buy our own home.

Ok, I just moved $2,300 over from savings to the loan. That completely wiped out the smallest of the 4 remaining ones (they're consolidated into one bundle). I'm going to shuffle some stuff around in Feb and then do another big transfer in March. Feels good to see the balance go down.
BTW, start small. We purchased a dinky 2 bed 1 bath after the housing bubble collapse. Mortgage was cheaper than rent. We sold when we had enough equity and purchased our 3 bed 2 bath current home a couple of years ago. We're getting ready to move to our next home as the current home has enough equity to make the upgrade. I want to decrease my 25k mile yearly commute. Remember, I make $86k in the Bay Area. A nice home is easy to afford if my mortgage is <$1300.

You just have to start small, as in a 2 door Civic was DW's college car as well as our family car until I got the Prius. Cable TV is a nominal cost but still a cost. Make sure it is a need and not a want.

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Re: How do I balance debt v. investing in my situation

Post by Toons » Sat Jan 31, 2015 3:52 pm

"I hate debt", " I'd love to be totally debt free".
Good,you know what you don't want,and you know what you do want,implement a plan.

95,000 per year we don't make a lot.
Combined with "rent free",you do make a lot

2,000 to 2,500 in savings per month
Combine that with reduced spending via a monthly budget,you can knockout the 25k in car loans in less than a year.Once that is done,you can attack the student loan and be done with that in less than a year.To be more aggressive ,I would use at minimum 10k of the savings and apply to loans also.You could take care of 51k of debt in less than 2 years.Make it happen :thumbsup
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

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