most recent 30 from http://www.cashcommons.com 2010-03-15T06:53:56Z http://www.cashcommons.com/feeds/question/124 http://www.creativecommons.org/licenses/by-nc/2.5/rdf http://www.cashcommons.com/questions/124/after-i-pay-off-my-credit-cards-should-i-pay-down-my-student-loans-first-or-mortg MARY 2009-10-28T17:45:57Z 2009-11-28T18:24:39Z

<p>I have 22k in student loans at a fixed rate of 7.25% that has already been consolidated. I also have a 55,369.00 30 year fixed 6.25% mortgage. I have made 7 years of payments into my mortgage. My credit card debt of 6,000.00 should be paid off by May of 2010. A lot of the debt on my credit cards was for car repairs, vacations and veterinary bills.</p>

http://www.cashcommons.com/questions/124/after-i-pay-off-my-credit-cards-should-i-pay-down-my-student-loans-first-or-mortg/125#125 mbhunter 2009-10-29T00:19:19Z 2009-10-29T00:19:19Z

<p>You're already on the right track by getting your credit card paid off first.</p> <p>Your student loan debt has a lower balance and a higher interest rate, so knocking out that one will give you more breathing room faster, and will save you more interest in the long run.</p> <p>The one thing to consider before you pay down your debt is whether your emergency fund is at a level you're comfortable with. Consider building that up before throwing a lot of extra money at your debts. Another way to go about it is to sock, say, half of the money you've earmarked from each paycheck to your emergency fund, and the other half to paying down your debt.</p> <p>Good job!</p>

http://www.cashcommons.com/questions/124/after-i-pay-off-my-credit-cards-should-i-pay-down-my-student-loans-first-or-mortg/145#145 Dr Dean 2009-11-01T20:18:48Z 2009-11-01T20:18:48Z

<p>I would also suggest seeing if you could refinance your home if you plan to stay there for 5 years or more. A 15 year mortgage would shorten your home payoff by 8 years and the current rates are in the 4 1/2 % range. Your actual payment may be similar to your current one. </p> <p>Would need more information to run the numbers but would recommend at least checking.</p>

http://www.cashcommons.com/questions/124/after-i-pay-off-my-credit-cards-should-i-pay-down-my-student-loans-first-or-mortg/152#152 Matt SF 2009-11-02T15:48:05Z 2009-11-02T15:48:05Z

<p>I think you're on the right track by actually knowing how long it will take you to pay down your CC debt. The simple fact that you've ran the numbers so extensively, and budgeted out your expenses to 2010 means <strong>you have a plan</strong>. In my opinion, that's one of the top ways to pay down existing debt. Both MBH and Dr. Dean have solid points, so I would start there.</p> <p>But I will throw out an idea to reduce your student loan interest rate...</p> <p>Around 5 years ago (when home loans were easy to get), a friend of mine consolidated his grad school debt (~$40k) into his mortgage. At that time, he had a home that appreciated fairly rapidly, and could afford to pay the increased monthly payment. He was also paying in the 7% range for student loan debt, but got it down to 5% range with the refi/consolidation.</p> <p>If you follow Dr. Dean's advice of refinancing your mortgage, it might be a worthwhile question to ask your mortgage guy. </p> <p>Best of luck!</p>

http://www.cashcommons.com/questions/124/after-i-pay-off-my-credit-cards-should-i-pay-down-my-student-loans-first-or-mortg/184#184 Jesse Michelsen 2009-11-08T22:41:34Z 2009-11-08T22:41:34Z

<p>Personally, I would go for the student loans because of the higher interest rate and the much smaller amount. You may want to refinance the mortgage to an even lower rate of you can, while the markets down. You may be able to lower the interest on your school loans too, but I would still aim to pay those off first.</p> <p>My two cents</p>

http://www.cashcommons.com/questions/124/after-i-pay-off-my-credit-cards-should-i-pay-down-my-student-loans-first-or-mortg/195#195 MARY 2009-11-10T13:37:33Z 2009-11-10T13:37:33Z

<p>Thank you all for the input!! I am looking into lumping all my debt into a refi-ed fixed mortgage as that would lower my monthly debt and even the aggregate interest.</p>

http://www.cashcommons.com/questions/124/after-i-pay-off-my-credit-cards-should-i-pay-down-my-student-loans-first-or-mortg/197#197 Josh 2009-11-11T00:43:30Z 2009-11-11T00:43:30Z

<p>Good work in taking care of your debt. You're off on the right foot and asking the right questions!</p> <p>Personally, I think you're much better off tackling the student loans next, primarily because of the reasons others have mentioned (smaller amount makes it a good "debt snowball" candidate according to Ramsey). Other suggestions to refi are also valid, but there must be a desire to hang onto the home and a recognition of market conditions, living situation, etc. The best thing you can do is to keep making smart financial decisions (spend less than you bring in) and take on these debts over time. Good luck!</p>

http://www.cashcommons.com/questions/124/after-i-pay-off-my-credit-cards-should-i-pay-down-my-student-loans-first-or-mortg/303#303 Laura 2009-11-28T18:24:39Z 2009-11-28T18:24:39Z

<p>I would definitely not roll your student loans into the mortgage. If you lose your life, your spouse would still have to pay them off. If you pay off your mortgage first, and you lose your life, your student loans go away. Run the numbers and see how much extra paying off the mortgage first will cost you. It shouldn't be too much. It's not like your student loans are 19%. Consider it the cost of life insurance. Also, if you are disabled and your house is paid for, the government won't make you pay back the student loans. So you can also consider this to be a form of disability insurance as well. If you lose your job and your house is paid for, you won't lose your house. and there are no wages to garnish for your student loans. </p>