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Pay off Student Loan or HELOC first?

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NewlywedB10
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Pay off Student Loan or HELOC first?  Reply with quote  

I have roughly the same amount of debt in both my HELOC and in my student loans ($17,000 each). They both also have interest rates of 3.5%.

My question is, I have enough money to pay one of them off right now, but which one do I choose to pay off first? Or do I do something different?

Thanks!
Post Thu Aug 18, 2011 12:59 am
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coaster
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May I ask what your income is? And what are the payments and the terms on each?

~Tim~
Post Thu Aug 18, 2011 5:18 am
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NewlywedB10
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Income is about $90k.

Payment on the student loan is $135/mo, with fixed interest.

Heloc is interest only right now and is variable rate, but current finance fees are around $50/mo.
Post Thu Aug 18, 2011 7:29 pm
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littleroc02us
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Personally I would get rid of the student loans first because god forbid something happens, they aren't bankruptable.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Thu Aug 18, 2011 7:55 pm
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clydewolf
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Re: Pay off Student Loan or HELOC first?  Reply with quote  

quote:
Originally posted by NewlywedB10
I have roughly the same amount of debt in both my HELOC and in my student loans ($17,000 each). They both also have interest rates of 3.5%.

My question is, I have enough money to pay one of them off right now, but which one do I choose to pay off first? Or do I do something different?


NewlywedB10,

It sounds like you have no mortgage on your home.
If that is true, then pay off the HELOC first. This will give you a place to live, and an asset you may be able to sell later.

If you have a mortgage and a HELOC, then get rid of the student loans first.
Because paying off the HELOC gets you nowhere while still having a mortgage.
Post Sat Nov 03, 2012 8:11 pm
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coaster
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mod's note  Reply with quote  

Please don't resurrect threads more than a year old. Thanks.

~Tim~
Post Sun Nov 04, 2012 6:57 am
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