Debt Question

[skives]

My whole financial situation was posted earlier this year. here is a link.

http://www.savingadvice.com/forums/debt/47453-need-advice-my-situation.html

I was just wondering if the $5,500 is the online savings account would be better served going towards my private student loan? I would still have the $1,000 EF at my local credit union.

What does everyone think?

[Radiance]

Skives,

This has been asked many times over.
100 EF is really the very minimum we should all aim for.
Then it is out to 3 months of bare expenses. Are you already at that point?

If so, I would redirect the $500 to pay off debt. Then you can go back to save more and more.

Any other views?

[skives]

I already direct $500 towards the debt I want to know if the $5,500 should be put on it? I live with my parents right now so emergencies rarely come up.

[creditcardfree]

I think it really comes down to your comfort level.

You likely will be paying on student loans for awhile, so the ability to save up another $5500 will take awhile. Do you see a need for this money in the next 2 years? Are you going to be needing to move out of your parents and pay rent?

I would be more likely to tell you to send it in to your loan...if I thought you were close to paying it off. Just roughly looking at your private loan, you probably have another 2 years to pay on it. So, I would probably keep it as an emergency fund...so that all future income can be really be put on the student loan, even if an emergency comes up.

[skives]

I am planning on moving out end of summer 2012 even it is paid off before. That is when it should be paid off if I didn't apply the $5,500 to the loan.