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Paying off debt by restructuring

November 22nd, 2008 at 04:15 pm

So I am getting more of a student loan than I need. I needed some of a student loan in addition to the subsidized one in order to cover my tuition, but I'm getting some in addition.

Essentially what I'm going to be doing with the extra is paying off DH's car. Then we'll pay off one credit card in February with our tax return and it should still leave some left over to pay down our other credit card & finally pay it off in June/July.

So in a little over 6 months we should owe on only 1 car, the HELOC, and my student loan.

How that affects us monthly is, it reduces our monthly payments by $790/mo. And even when I have to start paying on my student loans in January 2010, the total I'll owe is about $28K with half of it at 1.65% and the other at 6.8%. SO I'm estimating my payments around $300 for the student loan which is my undergrad loans AND graduate loans. I don't figure thats too bad to have a Master's Degree in Accounting and only owe $28K

So right now we pay:
$435/month to DH's car
$225/month to DH's CC
$130/month to my CC
$630/month to my van
$255/month to the HELOC
Then in January 2010 around $300/mo to my student loans

All this should help us in today's economy to be less dependent on my income. My goal is to reduce our monthly expense/increase our monthly income to where we no longer have to rely on my income in case I don't have a job.

In addition to all this, in June we won't have to pay my son's preschool anymore ($375/mo) since he'll be starting kindergarten

3 Responses to “Paying off debt by restructuring”

  1. gamecock43 Says:

    that's not a bad idea.

  2. creditcardfree Says:

    Good idea! If you have the opportunity to move debt around to make ends meet, then do it. Of course, it is also important to be paying the debt off...which you are. Keep up the good work.

  3. Koppur Says:

    That's a great idea. I know people who took extra on their student loan to get a car since the interest rate was so low. When I was in grad school, I used my extra to live on since I had a full time, but low paying job. The school I went to had grad classes from 330-6pm. Too early in the day to work a full 8 hr day shift, to late in the day to work a full 8 hr evening shift.

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