Week 4, Question 2
Well, thanks to your votes we’re asking the bank to change our mortgage payments to fortnightly. That’s also what my new pay frequency will be, so makes sense.
Following your feedback, we’ll be paying half our current monthly amount each fortnight. It’s going to cost us more over the year, but we’ll have to find a way to make it work. More on that later.
And on the subject of debt, have I mentioned my $13,000 student loan? Probably not, as I haven’t had to make any repayments since I stopped work.
But now I’m earning again I wonder if I should start paying it off – even though I will be under the repayment threshold ($17,160).
Getting rid of debt is our number one goal, and now there’s no interest adding up, the student loan should be easy to knock on the head – well, easier than our mortgage anyway.
Just a bit each month wouldn’t hurt? Worth it?
Steph
posted by sortme @ 9:32 AM
10 comments
10 Comments:
student loans are now interest free, so I would recommend paying it off only when required to. Use your money to pay off interest-bearing debts instead!
If your student loan has no interest charge at the moment then I would put my money on other debt. So pay off high interest debt first (credit cards, car loans, mortgage etc).
In the long run, you will be better off doing it this way.
Hmm this is a tricky one. Part of me says this is only a temporary thing. A snap election could happen and guess what, all that interest will go back on. I also feel that it is your responsibility to pay it back as quickly as possible if you can. It is a loan that was designed to help you. I think too many NZers have the attitude of bite the hand that feeds. The best debt is no debt. Doesn't it weigh you down each and every day knowing you have that loan attached to you like a dead weight? Personally I would be paying that debt off asap, although financially it makes sense for you not to. I guess its your call really.
You'd be crazy to pay off your student loan now it is interest free...if you really want to do something about it, put some money aside to pay it off if/when the government changes and interest goes back on it. Until then, you can earn interest on that money.
haha! looks like 50% of us are crazy then! 50% of us would start paying it back now.
If you die, who has to pay your student loan? Your next of kin? what a wonderful legacy to leave your family. NOT!
FYI If you do die with a student loan the loan is completely written off, so you have nothing to worry about on that front
Actually Student loan debt is written off if the borrower dies, it never gets transfered to anyone else
Given the tight financial situation you are in, I'd be inclined to leave it for now, seeing student loans are now interest free. Once you resume full time employment, I am sure you will be in a much better postion to repay much larger chunks comfortably.
However, if you feel you can - do it. (or put that money onto your mortgage!)
Hi there, I would say to pay off the interest bearing debt first and then tackle that student loan. Maybe you could put the amount that you WOULD pay on your student loan - onto the interest bearing debt. That way - once you have paid off that debt - you could transfer the payment straight to your student loan and you won't miss it! :)
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