Pay off the SL or no?

[CarolinaKat]

Hi YM Zombies, Soliders, Scientists and nameless rabble of victims,
I am going to be brave and ask for budgeting advice.. well rather cash flowing advice.

For starters: I am currently employed, the main wage earner and am *this close* to telling this whole company to go to hell and bejewling "I Kwit" on my tushie (thanks NancysSummerSip). DH is employed, carries the health insurance and makes not as much, but enough so that we won't starve.

As of right now, I have $2900 left on my student loan at 5.8%. This is the only debt DH and I have between us. Min payment is 190/month. I've been paying $500 a month because I can.

We have ~5000 EF and ~15000 short/medium term savings with which we were planning to finish updating the kitchen, install a dryer, and get the last bedroom free of ugly carpet. My ROTH is fully funded for the year (no 401k here) and I have to check on DH's TSP (or whatever the military 401k is)

Should we:
A) Pay off the SL and free up that cash flow in case I loose my job?
B) Start paying only the minimum on the SLs and save the rest?
C) Keep doing what we're doing?
D) Something I haven't thought of?

[Wisconsin Beth]

Is your DH likely to be transferred?  Since he's military? 

[yogiii]

b

[NancysSummerSip]

I'd save as much as possible and pay the minimum on the SL, also because you can. You don't have much left, and it's all the debt you have left.

Don't blame you in the least for making this decision. I have some medical things I want my current insurance to cover before the end of the year (so I don't have to restart the deductible or start with new insurance or wait for coverage to kick in), so I am getting them done before I go.

[CarolinaKat]

Aug 25, 2014 13:12:16 GMT -5 Wisconsin Beth said:

Is your DH likely to be transferred?  Since he's military? 

Not currently in the plans. All the placed that he's available for transfer they can't transfer him to because I'm too broken to leave the lower 48.

Also, the job market isn't awful in this area for ChemEs so that's a plus. Never thought I'd seriously consider quitting without another job lined up though

[Tiny]

I'd go with B. Pay the minimum on the Student loan.

I estimate you've got about 16 months or so left on it. You've already paid the bulk of the interest on the loan. And having more cash available would be potentially beneficial.

I don't see much benefit to drain cash on hand to pay it off now - especially since you'll have less income.

[Angel!]

I agree B would be best.  I understand the urge to just pay it off.  If you weren't thinking about quitting, that would be what I would do.  Cash would be king in that situation & $2900 in the bank would be better than not owing $190/month.

[ArchietheDragon]

Pay off the SL now in one lump sum.  Use the decreased EF as motivation to stay at your job (or at least to not quit without having another). 

[CarolinaKat]

Aug 25, 2014 14:06:07 GMT -5 ArchietheDragon said:

Pay off the SL now in one lump sum.  Use the decreased EF as motivation to stay at your job (or at least to not quit without having another). 

That means I would have to be with these douchecanoes an extra 3.8 weeks (after taxes)

[Wisconsin Beth]

So take the extra time to embroider "I kwit" with rhinestones and sparkles and whatnot on your shorts/pants/skirt for your exit. 

[CarolinaKat]

So work just gave me a $250 bonus....


Is it bad that only pisses me off?

[Bonny]

Aug 25, 2014 15:06:03 GMT -5 CarolinaKat said:

So work just gave me a $250 bonus....


Is it bad that only pisses me off?

It's probably enough to pay for the sparkly rhinestone outfit.