What should we conquer next?

[Nk26]

My wife and I have no credit card debt at all, We havent used credit for anything in almost 2 years and dont plan too anymore. We dont own a home yet but would like to get started saving for one now. The only debt we currently have is:

Private Student Loan
15856.00
4.8% Variable
Min payment is $111.00
* We hated having to get this but we had no choice.

Car Loan
9581.00
8.49%
Payment is 324.00

Sallie Mae Loan
We have been paying this down since its now our smallest debt.
500$

We usually clear between 3500 and 4K a month just depending on my wife's job. Currently my wife takes a day off every 2 weeks so she only really works about 10 days a month. Weve been talking about her working her full hours now that the baby is older. I stay at home with our 2 year old as were both in the medical field and our schedules would not work. I will hopefully go back to work in the next year. What should we do next? Part of me thinks about making double payments on the car and I could have it paid off in like 18months but that student loan freaks me out with the variable apr. The sallie mae loan will be paid off in 2 months regardless. Is it better to just keep making payments and sock away cash for a house?

[jpg7n16]

What's the rate on the Sallie Mae loan?

My personal order:
1) take only employer match at 401k (if they match 3%, raise or lower to 3% - no more, no less)
2) build up 1/2 to 1 month emergency fund
3) pay off car
4) establish 3-6 mo emergency fund
5) start saving for home (on top of EF)
6) fund retirement accounts
7) pay extra on student loans

And I likely try to do 5 and 6 at the same time.

If student loans ever get to 7% or higher, I put them with #3. But I wait until that happens.

[littleroc02us]

To me it is impossible to fight 10 battles at once. I feel the best thing to do to make progress is to pay off the smallest debt first. Boom it's gone with the money you make. Pay the minimum on the others. According to your numbers, you can have the car paid off in 2 months. That leaves the student loan. Again, if you can put 4k to the student loan each month, isn't it gone in 4 months? So, just like that in 6 months all debts are gone. Then start saving for a 20% downpayment.

[Eladiosaysthat]

Hey there,

How about refinancing that car loan? Rates are low, especially at the credit union, you could refinance for a shorter time, and have payments that are the same or even lower. Google PENFED credit union, anybody can join with their miliotary family association membership. Check it out.

[Eladiosaysthat]

Refinance the car, maybe?

Hey there,

Duplicate post

[jIM_Ohio]

That 8.49% car loan needs to go fast- pay that down as fast as you can, then start saving for a house while also paying down the other debts.

[ferriwinkle]

put all excess money to pay off car, then student loans, and you said the sallie mae loan will be paid of in 2 months. After your debts are paid off, then you can save quickly for the down payment on a house. I know you want to own a house now, but wouldn't it be better to have no other debt first?

[whitewater30]

conquer

I'd pay the Sallie May loan off first, then the car, then the private student loan. Then, you'd have no payments to worry about while saving up your down payment for the house.

[Cassius King]

Where's the EF at?!

You have a child and are a one income household. Sure the interest rate on the car is high, but I would be putting money aside in a EF at the same time.
I wouldn't even begin saving for a house until all the debts are gone and a substantial EF is established.
What's the outlook for you gaining employment again?

[savelikedave]

next step

After saving at least $1000 in an emergency fund. Pay off your next largest debt. Use the money you used to pay on that debt to pay off your next largest debt, until you have your consumer debt paid off.

[runj]

Bottom line is paying any loan earlier reduces cost of the loan. but have to do it with the right compfort.

[Tree0164]

Pay off Sallie Mae and then focus on that car loan. Then you should be able to aggressively pay off the private student loan.

[snafu]

Congratulations on staying off the CC treadmill. If you are a one income household, I suggest you seek whatever employment your skill sets cover that co ordinate with your wife's working hours. Everyone has their own view on child care so you can return to your profession when you decide your child is old enough. Meanwhile, all your earnings could be targeted to your house DP.

In my view, the next target would be to take advantage of any Retirement Program match for your wife from her employer. An important Retirement income factor is the time multiplier.

[DebbieL]

To me it is impossible to fight 10 battles at once. I feel the best thing to do to make progress is to pay off the smallest debt first. Boom it's gone with the money you make. Pay the minimum on the others. According to your numbers, you can have the car paid off in 2 months. That leaves the student loan. Again, if you can put 4k to the student loan each month, isn't it gone in 4 months? So, just like that in 6 months all debts are gone. Then start saving for a 20% downpayment.

Their entire take-home pay is $3,500-4,000 per month. There is no way they can put the amounts towards debt that you are suggesting.

[littleroc02us]

Their entire take-home pay is $3,500-4,000 per month. There is no way they can put the amounts towards debt that you are suggesting.

Sorry, this post was meant for a different thread. Whoops!