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munchkinbugs
My little loves!
Member since 1/06 8093 total posts
Name:
Lisa
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Financial question???
I will be receiving a big bonus check in March.
I am up in the air on how to spend it. I can either pay off my student loan or use it towards a down payment on a house. Or I could split it between the two.
I have 2 more years on the loan. And we also have a good amount saved for the house. Just waiting for the CD to end.
My reasoning for paying off my loan is that I may stop working in the near future if I have a kid. I don't want to burden DH with that payment. Am I weird for thinking that way??
What would you do and why???
Thanks.
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Posted 2/6/07 5:07 PM  |
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evnme
My little lamb
Member since 8/05 12633 total posts
Name:
aka momma2b
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Re: Financial question???
i would pay off the loan for the very reason you stated.
"My reasoning for paying off my loan is that I may stop working in the near future if I have a kid. I don't want to burden DH with that payment."
we are trying to do the same
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| Posted 2/6/07 5:09 PM |
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LBG30
:)
Member since 9/05 3423 total posts
Name:
Noelle
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Re: Financial question???
I think its smart to pay off the student loan-one less bill a month!
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| Posted 2/6/07 5:10 PM |
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2PreciousBlessings
The Perfect Pair
Member since 5/06 19861 total posts
Name:
Best Wife & Mommy
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Re: Financial question???
Posted by evnme
i would pay off the loan for the very reason you stated.
"My reasoning for paying off my loan is that I may stop working in the near future if I have a kid. I don't want to burden DH with that payment."
I agree!
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| Posted 2/6/07 5:11 PM |
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Kate
*****
Member since 5/05 7557 total posts
Name:
Kate
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Re: Financial question???
I would use it for the house. The interest rates on student loans are usually very low.
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| Posted 2/6/07 5:14 PM |
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MsMBV
:P
Member since 5/05 28602 total posts
Name:
Me
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Re: Financial question???
If you are planning on buying a house the student loan early pay off will look good on your debt ratio portion of your mortgage application.
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| Posted 2/6/07 5:15 PM |
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Shopaholic921
SUP..
Member since 10/05 5113 total posts
Name:
Brooke
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Re: Financial question???
I would take the money and set up an account that will automatically pay your loan on a monthly basis for you. I wouldn't pay it off in full. Student loans reep good tax benefits.
This way you'll still get the tax write off, but will knock off the burden on your DH to pay it himself.
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| Posted 2/6/07 5:16 PM |
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MrsMerlot
Unconditional Love
Member since 4/06 6005 total posts
Name:
Chrissy
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Re: Financial question???
Posted by Shopaholic921
I would take the money and set up an account that will automatically pay your loan on a monthly basis for you. I wouldn't pay it off in full. Student loans reep good tax benefits.
This way you'll still get the tax write off, but will knock off the burden on your DH to pay it himself.
agreed one billion percent
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| Posted 2/6/07 5:30 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Financial question???
Posted by Shopaholic921
I would take the money and set up an account that will automatically pay your loan on a monthly basis for you. I wouldn't pay it off in full. Student loans reep good tax benefits.
This way you'll still get the tax write off, but will knock off the burden on your DH to pay it himself.
I agree with this as long as you are able to utilize the student loan interest credit on your tax returns. Plus, depending on what interest the loan is at, it may be possible to invest in something relatively safe at a higher rate.
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| Posted 2/6/07 5:37 PM |
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munchkinbugs
My little loves!
Member since 1/06 8093 total posts
Name:
Lisa
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Re: Financial question???
Thanks for the ideas.
Last year I was able to write off about $300 on the loan. I'm guessing that's not alot.
I like the idea of setting up the separate account just for that.
Do you guys think a $300 write off is worth keeping that bill around, or should I just pay it off???
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| Posted 2/6/07 6:20 PM |
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Nicole728
My Happy Girl
Member since 7/06 8198 total posts
Name:
Me
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Re: Financial question???
100% pay off the student loan...that is money you can put towards putting money down on a house!
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| Posted 2/6/07 6:23 PM |
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Shroggie
Don't Worry...Be Happy
Member since 5/06 6261 total posts
Name:
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Re: Financial question???
I would just pay the loan off. That's one less bill you have to worry about when you decide to stop working and have children.
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| Posted 2/6/07 6:23 PM |
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Hi-Fi55
12 years...wow....
Member since 2/06 2984 total posts
Name:
Dianne
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Re: Financial question???
I would definitely pay off the loan.
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| Posted 2/6/07 6:48 PM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Financial question???
Posted by Kate
I would use it for the house. The interest rates on student loans are usually very low.
agreed. after a year of being in the house refinance and then pay off your student loans. get the equity and invest your money in real estate.
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| Posted 2/6/07 6:50 PM |
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neenie
Member since 5/05 22351 total posts
Name:
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Re: Financial question???
Posted by babybug631
Do you guys think a $300 write off is worth keeping that bill around, or should I just pay it off???
Personally, I don't.
that's about the same write off that i get each year, and that amount isn't really going to make the difference between getting no refund vs. being able to go to europe for a month w/ your tax refund 
I'd pay it off... its one less thing to worry about, and it can boost your credit score significantly, which will get you a better mortgage rate, which, in turn, could save you thousands of dollars. jmo.
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| Posted 2/6/07 6:54 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Financial question???
pay off the student loan- but take the money you used to pay the bill with and put it in a high return account
citibank has a 5% e savings account- ( I feel like I work for them sometimes)
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| Posted 2/6/07 8:16 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Financial question???
it depends on what the interest rate is on the student loan.
and remember, the interest is tax deductible on the student loan (but you probably dont have that much interest if you only have 2 years left)
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| Posted 2/6/07 8:30 PM |
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nrthshgrl
It goes fast. Pay attention.
Member since 7/05 57538 total posts
Name:
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Re: Financial question???
Posted by Meaghan729
it depends on what the interest rate is on the student loan.
and remember, the interest is tax deductible on the student loan (but you probably dont have that much interest if you only have 2 years left)
I agree.
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| Posted 2/6/07 9:14 PM |
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Tine73
Member since 3/06 22093 total posts
Name:
*********
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Re: Financial question???
Posted by Kate
I would use it for the house. The interest rates on student loans are usually very low.
Ditto!!
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| Posted 2/6/07 9:47 PM |
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Gumpslilqtpie
Living the DREAM!!!
Member since 7/06 2646 total posts
Name:
Kimmer
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Re: Financial question???
Posted by MsMBV
If you are planning on buying a house the student loan early pay off will look good on your debt ratio portion of your mortgage application.
I agree. Congrats on your bonus!! 
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| Posted 2/6/07 10:12 PM |
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munchkinbugs
My little loves!
Member since 1/06 8093 total posts
Name:
Lisa
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Re: Financial question???
Thanks ladies! 
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| Posted 2/6/07 11:33 PM |
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