Big T
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I believe that you should pay off your debt and get it out of the way. You never want debt hanging above your head. I listen to Dave Ramsey on XM daily, he is a debt expert. I would check out his website before you make a final decision. Maybe even listen online for free to see what he has to say. www.daveramsey.com.
You have plenty of money to pay off your debt. There is no way you would make as much interest on the money that you have to account for the interest you would be paying on the debt. So essentially you would make more money paying off the debt!
Good Luck with finding a new job! |
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KT
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pay it off |
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gasguy695
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well this is a hard choice but since you are a saver and will contiue to do so i would rather be debt free even though not working then be in debt and later might get into more debt once you start working again
payoff those bills and good luck |
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angel_baby
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I would get completely out of debt if I were you. But make sure you know you'll be able to find a job in the near future because even if you did make your monthly payments and save your $ you cant live off that for very long... |
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Davx
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Pay off the debt, you would pay more for the debt than you would get from the savings. |
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taylovesnickj16
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i would just want to pay it off and start fresh with your life |
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Blackwell754
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Pay it off and get rid of it. Then get on the job hunt, start saving again and bodyswerve credit for a loooong time! |
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Dwight A B
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Set your cash aside while you aggressively look for a job. Once you get the job, immediately pay off the debt and put the rest in an emergency fund.
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Doctor Deth
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pay it off and cut down any other expenses you have - file for unemployment - sign up with temp agencies |
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tony25bull
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hold on as long possible in yous saving |
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Brutally Honest
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I'd recommend contacting your loan agencies and seeing if they won't defer payment (or minimize payment to only the interest due each month) until you become reemployed.
If you drain your savings right now paying off debt, you'll have that much less to rely on, and may even have to run up the credit cards -- AGAIN -- in order to survive.
Worst case, you pay only the minimum payment due until you get reemployed; but don't drain your account until you're financially stable again. |
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Shopaholic Chick
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well if you pay it now you will not accrue more interest on it...if you only pay the minimum in the end you may end up oweing 32k...here is my suggestion....pay off things liek drecit cards where the interest is based on the amount owed each month....but things like a fixed loan or a car payment where the payment and interest is set if you will not get a discount (or pay less in interest) by paying it off early....keep paying your regular payments...but check with your loans to see if you pay less if you pay off early...my brother checked and he found out whether he pays his car in 5 months or 25 months it is the same amount....so no need to pay it all early when he can gain interest in his account by holding onto his money for as long as possible |
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Rhapsody
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Figure out how much money you actually need to live each month. If you pay off your debt, you'll have $14K left. How many months will that last you? And make your estimate a little more than you actually think you spend, because unforeseen situations always pop up. How many months does that give you? If you're positive you can find a job in that many months, go ahead and pay off your debt. If not, don't risk it and see what you can do about getting your interest lowered. |
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Craig
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You want to minimize the interest you pay, but maintain some liquidity. I would definitely pay off anything with a small balance or a high interest rate. Long-term low-interest debts, like student or car loans, you might want to continue making regular payments, and give yourself a little more cash to keep going until you get the next job. |
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rockjock_2000
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Hang on to 6 months worth of necessary expenses (about 15K for most people). Once you've figured out how much you need to live on for 6 months, use the rest to pay down the debt. Dave Ramsey is a big "pay off debt" guy, but one thing I've never heard him say is to pay off debt at the expense of financial security. I've heard him say many times to people to keep some of the money saved up (a fully funded savings account with 3-6 months of expenses) and use the rest to pay off debt. In your case, if you pay off all $18K in debt, you will have $14 K left in savings. Will $14K be enough for you to live (debt free!!!) on for the next 6 months while you look for another job or jobs if you have to, since it might very well come to that in this job market? If so, pay off the debt and beat the pavement. Deliver pizzas and newspapers while you look for a job. $14K will give you a little over $2K a month to live on for the next 6 months, supplementing with a part time job or two will help extend the life of your savings, in case it takes longer to find a job. |
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andy
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I would keep paying your minimums until you found another stream of income than I would pay off your debts. |
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JASON M
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As far as my knowledge,this is a question with various answers,it is really depending on the mind of yourself,providing a great resource here http://www.DebtFreetips.info/debt-free.htm for reference though. |
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cjbglo
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There are three major variables here:
1. How soon do you feel you are to be employed again?
2. How much are you paying in interest?
3. If you pay off your debt, how long is $14k going to last given your expenses?
For example, if you pay off your debt now, you may end up incurring more debt if you're still unemployed in six months. The advantage to paying off your debt now is that you're not paying interest for six months.
Without knowing more about your specific situation, I think you should pay off interest-bearing debt as soon as possible. |
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wondering_in_indiana
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This all depends on how high of an interest rate you are paying. If these are credit cards (hope not), pay them off. If it is a house payment, you may want to go as normal with payments. An automobile loan though, is tricky. The rate of interest could be low and you may also want to take into consideration insurance, age of the auto, rate of depreciation of the auto (many are different due to rating).
Something else you may want to think about. What is your occupation/profession? Will it be easy to find another job or career? If so, relax and go with your schedule or maybe even pay off the debt but, if you feel it may be an extended period of unemployment, retain a substantial amount of cash to live on (6 months).
Hope I helped. . . |
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