09-25-2008, 08:12 PM
I don't have an emergency fund, so don't take advice from me. I would pay off the debt and be done with it. I would rather not have to pay debts or deal with them if there was an emergency. I have been paying my student loans for 16 years and have another 13 years to payoff (so paying them off someday will be nice).
My plan, if you could call it that, is that I could easily leverage $20-30,000 off my home equity loan and credit cards, if there was an emergency, and that would put me back to paying 250 or so in payments on loans if I had them.
Now, do you really need to make a decision in the next 6 months? I would think using your tax return to pay them off would make the most sense. 6 months more of holding the cash and paying the loan isn't really going to amount to much of a difference.
My plan, if you could call it that, is that I could easily leverage $20-30,000 off my home equity loan and credit cards, if there was an emergency, and that would put me back to paying 250 or so in payments on loans if I had them.
Now, do you really need to make a decision in the next 6 months? I would think using your tax return to pay them off would make the most sense. 6 months more of holding the cash and paying the loan isn't really going to amount to much of a difference.