Paying off that Student Loan!

Posted by Mrs Money on June 18th, 2008

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I am slowly but surely making a dent in my student loan debt. With the way the economy is, I’ve been trying to put as much money into savings that I can while paying off this debt. I’m not in too big of a hurry to pay this off because of the ultra low interest rate I am paying on it. This is the only other debt we have besides this loan is our mortgages. I’m not in too big of a hurry to pay those off right now.

I’ve decided that for our next vehicle purchase, we’re going to pay cash. I understand that we may not be driving the newest, hippest cars out there, but we’re going to have a car that gets us from point A to point B. Back when the tree fell on our house in January, I was able to get a 1994 Oldsmobile Achieva from my very gracious aunt. I have been so thankful for that car! It may not be the best looking, but it does the job and I love it. We can afford a car payment, but my thinking is if it isn’t broke, don’t fix it.

I want to have enough money saved up that in the event I am able to stay at home with our children. With me not bringing in a stable income from the bank, I’d like to know that we’ve got an emergency fund to cover everyday living expenses in the event something horrible happened. Let’s just say that I lost my job (knock on wood); I’d rather have the money that I normally would be putting toward debt reduction to be able to make the monthly payments on those loans and be able to pay living expenses rather than have less principal on the loan. That’s just my thinking.

Maybe once the economy gets better I’ll start being more aggressive in paying off our debts. Right now, this is working for us, so I’m going to continue to do what we’re doing. Of course I’m going to keep trying to make as much money as I can online by the different avenues I’ve discovered, and I’ll be putting that into savings.

Do you think I am doing the right thing by saving instead of paying off debt in this case? 

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4 Responses to “Paying off that Student Loan!”


  1. tiffanie says:

    losing a job is a horrible thing. i was let go from a position paying $34,650 annually and now we’re living off of my husband’s income and my unemployment. i was lucky that the week i was fired I got a $6000 bonus, but that was used for some untimely medical bills and to live off of for the past few months. i haven’t had to tap into our savings as of yet (knock on wood) but I wish we had had more time to save up an emergency fund (we were working on it at the time). it’s rough. i had planned on using the bonus money to pay off 4 of our credit cards, which didn’t happen. even our stimulus check went to offset what we owed in federal taxes! can’t cut a break, i swear… anyway, sorry for the novel. just hit a nerve i guess. even though we WERE planning smart, we just didn’t have a good enough headstart. i wouldn’t wish it on anyone!

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  2. Mrs Money says:

    Tiffanie- We had to pay taxes too! I was so mad. I am glad we got the stimulus money though, because that offset it plus more. I’m sorry to hear you lost your job. :(

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  3. mani kanna says:

    I agree that its increasingly becoming difficult to finance college education,I mean at graduation and even after you start earning you still have government loans to pay,i am however of the view that if we are to have a job while studying we can simply be opting for short term loans that way we can manage through college and at graduation bee debt free.
    ……………………….
    mani kanna
    loan-digger.co.uk/

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  4. Mrs Money says:

    Mani Kanna- It would be nice to graduate debt free. I wish my husband would have been able to! It stinks because the money we’ve paid against student loans we could have done so much more with. I look at it like this- he wouldn’t be making as much money or have the job he has if it weren’t for his college degree! :)

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