Managing my debt...

[Sodium Duck]

Anyone here good with managing debt? I guess my question is:
How should I pay these down in the smartest way possible?

(A) Direct Stafford Unsubsidized Student Loans at 2.48%
$1,313.00
$1,312.00
$1,313.00
$1,312.00

(B) Non-Direct Stafford Unsubsidized Student Loan at 6.80%
$3,500.00

(C) Non-Direct Stafford Subsidized Student Loans at 6.80%
$3,911.00
$1,589.00

(D) Non-Direct Stafford Subsidized Student Loan at 6.80%
$3,026.00

(E) Non-Direct Stafford Subsidized Student Loan at 6.00%
$4,474.00 at 6.00%

(F) Parent PLUS Student Loan at 8.50%
$14,500.00

(G) MEFA Undergraduate Student Loan at 6.99%
$10,389.61 at 6.99%

(H) MEFA Undergraduate Student Loan at 6.89%
$11,282.05 at 6.89%

(I) Parent PLUS Student Loan at 8.40%
$12,530.000


Should I focus on paying down the highest interest rate loans first? Or I could pay off in full a few of the small Stafford loans and apply the freed up money to the higher interest rate loans? ...Or I could just pay the minimums every month and not have a life until 2019...

[AzNguy]

Pay highest interest rate then the ones that are unsubsidized. I don't see how you got interest rates on a subsidized loan because I have 0% on my subsidized stafford loan. :) Good luck anyways.

[Altitude]

Originally Posted by AzNguy

Pay highest interest rate then the ones that are unsubsidized. I don't see how you got interest rates on a subsidized loan because I have 0% on my subsidized stafford loan. :) Good luck anyways.

+1 And damn that's a lot of debt.

[yaris-me]

Try and see if you can consolidate the loans with interest greater than 6.00% to a loan with 6.00% or lower. If not, pay the highest interest rate off first. Many hospitals belong to credit unions. With direct deposit of your pay check they might be willing to consolidate your loans.

[mr9865]

Originally Posted by Altitude

+1 And damn that's a lot of debt.

But at least he has a yaris!

[nemelek]

$71,000 in debt is a lot. At 7% for 10 years that is $824/month and in the end you will pay $28,000 in interest. Could be worse. My doctor has loans over $200,000. The best thing to do is not take on any new loans. No credit cards or new cars. Use extra money from tax returns, overtime, bonuses, etc to pay the high the highest rates first. As suggested, consolidate if possible. Live as cheaply as you can. Get a roomate, bring your lunch to work, no dinners out, no mods to your car and shop at thrift stores. Marry some one with money.

[2+2]

Originally Posted by yaris-me

Try and see if you can consolidate the loans with interest greater than 6.00% to a loan with 6.00% or lower.

I had to climb out of debt starting 3 years ago and at first did what all the "experts" tell you to do. I concentrated on the highest interest debt first. The problem I had was managing that many bills when I really just wanted to concentrate on my job and living frugally (takes time to prepare meals to take-with etc).

My debt was credit cards so it was different but something here might help you. I concentrated on the smallest debts first but also the ones that were the biggest headache to deal with. For instance, I owed Lowes a few hundred and I didn't like their website payment thingy. So I paid them off pronto and had one less headache. Next was Home Depot and so on.

Once I got the debt down to the 3 biggest credit cards I switched tactics and concentrated on the highest interest card. I get paid weekly and every week I made a payment on the card. Also, I used the card for all my purchases through the week. It's a nice incentive to spend less at the grocery store etc when you've handed pretty much your whole paycheck over to the credit card company and you're not making as much progress as you'd like. Can you say off-brand veggies taste great? I thought you could. lol

Consolidating as much of the debt as possible would make managing it a lot easier!

[IllusionX]

I hope you know you are paying interesting on all of these separately, each month right?

i would HIGHLY suggest contacting your bank and verify if it is (i'm probably sure it is) better for you to consolidate your debt. My rough calculation is 60k. You will be then doing only ONE payment a month, instead of having deadlines for 9 different debts.

I tell you, it is much easier to manage 1 debt, than 9 different ones. You may, or may not pay less in interest rates, but you will hate yourself so much for having so many different debts.



BTW, i don't know how it works in USA, but in Canada, student loans are made at the bank (gov't cheque) and deposited in a student loan account. At end of the full time studies, the bank will request for payments, without any required minimum monthly payment.

[Sodium Duck]

I do online banking and have setup the minimum monthly payments to come out of my account automatically. It's not that complicated, even if I didn't. Even if I consolidate, I would still be paying a weighted average of interest on the loans, so that's not going to help much except to "simplify" making payments. It usually costs more because I would probably end up paying more interest if I consolidate -- the whole point is to average the interest and pay one person, which means more money over the long run and a "cheaper" monthly payment. I'm refinancing one of the loans, still inquiring about others.

Dude, Canada is confusing. Here, you can take out some small federal loans; the rest you have to come up with yourself. So I had to take out personal loans (the MEFA and Parent PLUS). I wish that's how it was here...

[Altitude]

Consolidation is a good idea but it is highly unlikely a bank would be willing to take on the whole sum with nothing for collateral. 60K unsecured credit isn't granted to very many people.

[yaris-me]

Originally Posted by Sodium Duck

I do online banking and have setup the minimum monthly payments to come out of my account automatically. It's not that complicated, even if I didn't. Even if I consolidate, I would still be paying a weighted average of interest on the loans, so that's not going to help much except to "simplify" making payments. It usually costs more because I would probably end up paying more interest if I consolidate -- the whole point is to average the interest and pay one person, which means more money over the long run and a "cheaper" monthly payment. I'm refinancing one of the loans, still inquiring about others.

Dude, Canada is confusing. Here, you can take out some small federal loans; the rest you have to come up with yourself. So I had to take out personal loans (the MEFA and Parent PLUS). I wish that's how it was here...

If you're not going to try, why post? Sympathy?

[Sodium Duck]

I was looking for some help in which loans to pay down first so I pay the least in interest over time. I think if I pay that 14.5K PLUS loan of really fast (I already have about 10K saved up to take a huge chunk out of it), and at least refinance that stupid 12.5K PLUS loan -- that would help some.

Maybe I can refinance the loans that I am aggressively paying down? Since Altitude said it would be hard to get that much cash at once? Like refinance the PLUS loans, and pay them off. Refinance the MEFA's, and pay them off, etc.?

Also, does anyone know if it will hurt my credit to pay them off so fast? I've heard that doing things like not carrying a balance on a credit card, and just paying the bill off every month aren't good for your credit score. (I don't have credit cards, but my credit score is pretty good as of right now)

[rningonfumes]

No, paying off your credit cards (read unsecured debt) each month is best. It's when somone with a total of say 50k combined credit limit over 5 cards, they have at least used up 5k in each card but one and they decided to cancel the one they don't use. They just effed- up their debt to credit ratio by canceling that last good one.

Paying off student loans without any defaults, payment misses, early pay-offs will only make you look better.

You're able to pay monthly with little trouble, you just want input on the most efficient way to go about it?

[yaris-me]

Originally Posted by Sodium Duck

Also, does anyone know if it will hurt my credit to pay them off so fast? I've heard that doing things like not carrying a balance on a credit card, and just paying the bill off every month aren't good for your credit score. (I don't have credit cards, but my credit score is pretty good as of right now)

What hurts your credit is late payments.

[supmet]

Originally Posted by Sodium Duck

..Or I could just pay the minimums every month and not have a life until 2019...

No, the proper American Dream is to not have a life ever again. Be sure to get under a mountain of debt with a mortgage before you pay any of this off. Ideally you should never be able to pay off what you owe by the time you are 25, that way you'll be stuck paying interest and taxes for the rest of your life.

[2+2]

I don't understand this thread even a little.

If managing the debt is not an issue why ask which loan to pay off first? Isn't the one with the highest interest rate the one that charges the most interest? I'm feeling extra dumb.

[Bob Dog]

Work your ass off (1 1/2 or 2 jobs, or one many hour job)for about 4 years or be in debt forever. Live an absloute minimal lifestyle as every dollar you spend now will ultimately cost you many compounded dollars later on. I worked as I went to school and lived very cheaply, without a vehicle, and with just minimum possessions and very cheap housing. I took 6 years to get my 4 year degree and graduated debt free. I recommend it.

[nemelek]

Originally Posted by Bob Dog

Work your ass off (1 1/2 or 2 jobs, or one many hour job)for about 4 years or be in debt forever. Live an absloute minimal lifestyle as every dollar you spend now will ultimately cost you many compounded dollars later on. I worked as I went to school and lived very cheaply, without a vehicle, and with just minimum possessions and very cheap housing. I took 6 years to get my 4 year degree and graduated debt free. I recommend it.

Great for you! Many kids from high school never worked going into or while at college. The loan money piles up and the thought that one killer job will erase the debt in no time. The reality is that the entry level jobs for graduates will pay for basic living expences and not much else.