Deployment savings question - Financial Management

Kara · 11-20-2007, 10:02 PM

Mike and I should be saving between $10,000-15,000 during his deployment to Iraq. Should we use our savings to pay off his truck, pay off my school loans (less than $5,000), furnish our house (we don't own a thing!) or buy me a new car? I mean we could do a combination of these. What is the most important? Truck loan or school loan?

jlbecker · 11-20-2007, 10:03 PM

which has a higher interest rate?

Kara · 11-20-2007, 10:09 PM

Originally Posted by jlbecker

which has a higher interest rate?

My school loans I believe.

jlbecker · 11-20-2007, 10:18 PM

i would say, if you can pay off the student loan, which has a higher interest rate, do that first. then it depends on your budget (once he's home) what to spend the rest on. you might want to hang on to a little bit after homecoming until you figure out your new living expenses. then go ahead and pay something else off. good luck!

Kara · 11-20-2007, 10:19 PM

Thanks!

billysgirl · 11-20-2007, 10:20 PM

welll... are you going to buy the car for yourself either way? if you have an okay rate on your truck and school loans then i would leave those and pay cash for the car and furniture, however, if you are paying a high rate, maybe you can pay those off and use a loan for the car?

Kelsey · 11-20-2007, 10:23 PM

Hm. I would probably pay the truck loan off first. School loans are "good" loans/debt to have and you can deduct interest from school loans on your taxes each year. Usually they have a very low interest rate (unless they are in delinquent status), so..if it were me, I'd pay off the truck loan first or at least pay of a portion of it

Kt-did · 11-20-2007, 11:29 PM

Just a note about student loans as I just heard this and never knew it before....

If (heaven forbid) you ever have to claim bankruptcy, student loans DO NOT get wiped off your record. THEY STAY and you still owe.

And so far as I understand, so long as you stay current on payments and limit your credit used to 40% of the total credit limit, your credit will look good.

Interest rate is important, but shouldn't be your single deciding factor... maybe the straw that breaks the camels back in the decision. Especially if you can claim the interest....

I'd suggest splitting it... use a little for yourself on the house (be a bargain shopper of course!), maybe put a down payment on a vehicle for you, but most importantly, I'd strongly urge you to tuck a portion away. Invest it or just find a savings plan that will give you the most for your money....

gunsgirl · 11-21-2007, 09:00 AM

ok my two cents-

can you pay your bills as you sit right now?

is everything getting paid on time evry month?

how much money do you currently have in savings:
emergency fund- should have at least 6 months worth of salary?
IRA?
TSP?
and a general savings with should have at least 2500?

if you answer no to the any of the questions- seriously consider where you put your money-

which I understand is what your trying to do.. But remember once you spend it it is gone---and with money there is no turning back...

Shaky · 11-21-2007, 09:18 AM

It all depends the balances you have on the loans. So depending that I would pay the truck loan 1st, put emergency funds in savings and about furnishing your home, I would do it little by little, you guys are just starting, don't put too much money on furnishing the house right now, get your self stable financially on the most important things which would be your emergency funds and trying to get out of debt (truck, student loands and posibly new car loan) I know I would not want to have two car loans at the same time

Once you have those basics cover then I would go on decorations for the house and the newer furniture and all that.

11-20-2007, 10:02 PM	#1 (permalink)
Kara Psych Student by Day.. Join Date: Jan 2006 Location: Massachusetts Posts: 13,111 Classifieds: (0) Activity: 0% Longevity: 65%	Deployment savings question Mike and I should be saving between $10,000-15,000 during his deployment to Iraq. Should we use our savings to pay off his truck, pay off my school loans (less than $5,000), furnish our house (we don't own a thing!) or buy me a new car? I mean we could do a combination of these. What is the most important? Truck loan or school loan? __________________ Thank you for my siggy Stacey! He's home from Iraq!

11-20-2007, 10:03 PM	#2 (permalink)
jlbecker Damn, it feels good to be a gangsta Join Date: Aug 2006 Posts: 14,418 Classifieds: (0) Activity: 18% Longevity: 55%	which has a higher interest rate? __________________ ~ jamie

11-20-2007, 10:18 PM	#4 (permalink)
jlbecker Damn, it feels good to be a gangsta Join Date: Aug 2006 Posts: 14,418 Classifieds: (0) Activity: 18% Longevity: 55%	i would say, if you can pay off the student loan, which has a higher interest rate, do that first. then it depends on your budget (once he's home) what to spend the rest on. you might want to hang on to a little bit after homecoming until you figure out your new living expenses. then go ahead and pay something else off. good luck! __________________ ~ jamie

11-20-2007, 10:19 PM	#5 (permalink)
Kara Psych Student by Day.. Join Date: Jan 2006 Location: Massachusetts Posts: 13,111 Classifieds: (0) Activity: 0% Longevity: 65%	Thanks! __________________ Thank you for my siggy Stacey! He's home from Iraq!

11-20-2007, 10:23 PM	#7 (permalink)
Kelsey Happy little tree Join Date: Oct 2006 Location: Manhattan, KS Posts: 7,856 Classifieds: (0) Activity: 0% Longevity: 51%	Hm. I would probably pay the truck loan off first. School loans are "good" loans/debt to have and you can deduct interest from school loans on your taxes each year. Usually they have a very low interest rate (unless they are in delinquent status), so..if it were me, I'd pay off the truck loan first or at least pay of a portion of it __________________ Keep up with all of our adventures with renovating a 1960s ranch house - check out MY BLOG!

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11-20-2007, 10:20 PM	#6 (permalink)
billysgirl Senior Member Join Date: Jan 2007 Location: Dallas, TX Posts: 1,237 Classifieds: (0) Activity: 0% Longevity: 47%	welll... are you going to buy the car for yourself either way? if you have an okay rate on your truck and school loans then i would leave those and pay cash for the car and furniture, however, if you are paying a high rate, maybe you can pay those off and use a loan for the car?

11-20-2007, 11:29 PM	#8 (permalink)
Kt-did I'm someone's baby Join Date: Oct 2007 Location: SoCal Posts: 2,820 Classifieds: (0) Activity: 17% Longevity: 35%	Just a note about student loans as I just heard this and never knew it before.... If (heaven forbid) you ever have to claim bankruptcy, student loans DO NOT get wiped off your record. THEY STAY and you still owe. And so far as I understand, so long as you stay current on payments and limit your credit used to 40% of the total credit limit, your credit will look good. Interest rate is important, but shouldn't be your single deciding factor... maybe the straw that breaks the camels back in the decision. Especially if you can claim the interest.... I'd suggest splitting it... use a little for yourself on the house (be a bargain shopper of course!), maybe put a down payment on a vehicle for you, but most importantly, I'd strongly urge you to tuck a portion away. Invest it or just find a savings plan that will give you the most for your money.... __________________ ~Katie ~LIVE~LAUGH~LOVE~LEARN~ HE'S HOME!!! And he PROPOSED!

11-21-2007, 09:00 AM	#9 (permalink)
gunsgirl I love cats Join Date: Jul 2007 Location: kingsland GA/ HITRON JAX Posts: 4,376 Classifieds: (3) Activity: 62% Longevity: 39%	ok my two cents- can you pay your bills as you sit right now? is everything getting paid on time evry month? how much money do you currently have in savings: emergency fund- should have at least 6 months worth of salary? IRA? TSP? and a general savings with should have at least 2500? if you answer no to the any of the questions- seriously consider where you put your money- which I understand is what your trying to do.. But remember once you spend it it is gone---and with money there is no turning back...

11-21-2007, 09:18 AM	#10 (permalink)
Shaky Miss Puerto Rico Join Date: Mar 2004 Location: FL Posts: 27,985 Classifieds: (0) Activity: 78% Longevity: 97%	It all depends the balances you have on the loans. So depending that I would pay the truck loan 1st, put emergency funds in savings and about furnishing your home, I would do it little by little, you guys are just starting, don't put too much money on furnishing the house right now, get your self stable financially on the most important things which would be your emergency funds and trying to get out of debt (truck, student loands and posibly new car loan) I know I would not want to have two car loans at the same time Once you have those basics cover then I would go on decorations for the house and the newer furniture and all that.