My wife and I both have substantial student loans. However, I consolidated mine at 3.5%, but her's were consolidated at 8.25%.
Just to pay her interest is $700/month. My payment is $300, with 1/3 currently going to principle. We also have about $8,000 on credit cards at 10% interest.
Our combined income is about $100,000 annually. Right now, I pay the $350 on my loan each month, and about $1,200 on hers. At that rate, her loan should be paid off in around 8 years.
I just feel like I may need to rethink this approach, as it seems like we make a lot of money, but are not getting anywhere fast against our debt.
Oh, we also have about 75G's in our 401Ks and put away 10% of our salary. We're early 30's. Any thoughts on how to reduce this debt more quickly? Some days it feels like we'd be better off defaulting and going to work at MacDonalds...lol
2007-09-14
04:50:37
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7 answers
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asked by
Ten Years Gone
4
in
Personal Finance