Mike and I should be saving between $10,000-15,000 during his deployment to Iraq. Should we use our savings to pay off his truck, pay off my school loans (less than $5,000), furnish our house (we don't own a thing!) or buy me a new car? I mean we could do a combination of these. What is the most important? Truck loan or school loan?

which has a higher interest rate?

which has a higher interest rate?

My school loans I believe.

i would say, if you can pay off the student loan, which has a higher interest rate, do that first. then it depends on your budget (once he's home) what to spend the rest on. you might want to hang on to a little bit after homecoming until you figure out your new living expenses. then go ahead and pay something else off. good luck!

Thanks!

welll... are you going to buy the car for yourself either way? if you have an okay rate on your truck and school loans then i would leave those and pay cash for the car and furniture, however, if you are paying a high rate, maybe you can pay those off and use a loan for the car?

Hm. I would probably pay the truck loan off first. School loans are "good" loans/debt to have and you can deduct interest from school loans on your taxes each year. Usually they have a very low interest rate (unless they are in delinquent status), so..if it were me, I'd pay off the truck loan first or at least pay of a portion of it :)

Just a note about student loans as I just heard this and never knew it before....

If (heaven forbid) you ever have to claim bankruptcy, student loans DO NOT get wiped off your record. THEY STAY and you still owe.

And so far as I understand, so long as you stay current on payments and limit your credit used to 40% of the total credit limit, your credit will look good.

Interest rate is important, but shouldn't be your single deciding factor... maybe the straw that breaks the camels back in the decision. Especially if you can claim the interest....

I'd suggest splitting it... use a little for yourself on the house (be a bargain shopper of course!), maybe put a down payment on a vehicle for you, but most importantly, I'd strongly urge you to tuck a portion away. Invest it or just find a savings plan that will give you the most for your money....

ok my two cents-

can you pay your bills as you sit right now?

is everything getting paid on time evry month?

how much money do you currently have in savings:
emergency fund- should have at least 6 months worth of salary?
IRA?
TSP?
and a general savings with should have at least 2500?

if you answer no to the any of the questions- seriously consider where you put your money-

which I understand is what your trying to do.. But remember once you spend it it is gone---and with money there is no turning back...

It all depends the balances you have on the loans. So depending that I would pay the truck loan 1st, put emergency funds in savings and about furnishing your home, I would do it little by little, you guys are just starting, don't put too much money on furnishing the house right now, get your self stable financially on the most important things which would be your emergency funds and trying to get out of debt (truck, student loands and posibly new car loan) I know I would not want to have two car loans at the same time :scared Once you have those basics cover then I would go on decorations for the house and the newer furniture and all that.

ok my two cents-

can you pay your bills as you sit right now?

is everything getting paid on time evry month?

how much money do you currently have in savings:
emergency fund- should have at least 6 months worth of salary?
IRA?
TSP?
and a general savings with should have at least 2500?

if you answer no to the any of the questions- seriously consider where you put your money-

which I understand is what your trying to do.. But remember once you spend it it is gone---and with money there is no turning back...

I'm 20, Mike is 21. I'm a full-time student and work 30-35 hours a week. My work has a savings plan through the state of Massachusetts (since I work at a police station). There is not much in there since I just started it recently. Mike has a TSP and puts about 15% of his pay in it. And then we have a general savings with 6,000. We barely have any bills. Just his $120 a month car loan, cell phones and car insurance ($70 for me, $120 for him). We have never had a problem paying bills.

We need basic things, we don't even have a bed. We plan on going to yard sales for the majority of our furniture, as well as old family pieces.

I have a 97 oldsmobile, I could probably wait a few years before getting a new car, now that I think of it.

It sounds like you guys are ok financially. I would kinda split it up around where you think it should go. I do agree that you should keep your student loans merely because of the tax benefits that come with it.
Kara you seem like a really smart girl with an amazing head on your shoulders. I give you major kudos for that.
I say you should buy some basic for furniture. better to own than finance.

It sounds like you guys are ok financially. I would kinda split it up around where you think it should go. I do agree that you should keep your student loans merely because of the tax benefits that come with it.
Kara you seem like a really smart girl with an amazing head on your shoulders. I give you major kudos for that.
I say you should buy some basic for furniture. better to own than finance.

Thanks so much. We definetly aren't going to finance any of our furniture. And I know his grandmother has some furniture she'd love us to have. The bed is a must buy though! :rofl

I think you pay off the loans, then put the rest on the truck. Get used furuniture as you have the money for it. Craigslist.com is a great place.

oh and any of our new furniture we bought and financed with 0% for _____ time and paid it off efore then just to build credit, it worked for us. But we knew we had the money

since you seem to be doing well-- take a small amount and get the things you need-

buy a good NEW matress and boxspring and bedframe - if can get a matching set of everything- IMO the bedroom should be a sactuary- and I know how nice it is having a new mattress and bedframe--

we bought a new headboard,footboard and frame, two night stands and a matching dresser AND a sofa, love seat, ottoman, two side tables, and a diningroom set with 6 chairs for 3 grand at Rooms to go-- we got the 24 months no interest and paid it off in 6 months ( just made the last payment this month)

good luck and have fun buying your new bed ( wink wink!!LOL)

I think you pay off the loans, then put the rest on the truck. Get used furuniture as you have the money for it. Craigslist.com is a great place.
:agree - check craigstlist for furniture

well personally i would call to see what interest rates i could get cut first, then wait and pay off the truck, since that loses value each day. i wouldn't finiance furniture the interest rates can be really high on that and if your moving around and it breaks sometimes you don't get nearly what you owe on it. student loans are good loans, they show you educated yourself. that is what the bank told us at least have you tried to consoldiated your student loans? that can cut back the interest if there is more than one of them. you seem super money smart i am sure you will make a good decision.

well personally i would call to see what interest rates i could get cut first, then wait and pay off the truck, since that loses value each day. i wouldn't finiance furniture the interest rates can be really high on that and if your moving around and it breaks sometimes you don't get nearly what you owe on it. student loans are good loans, they show you educated yourself. that is what the bank told us at least have you tried to consoldiated your student loans? that can cut back the interest if there is more than one of them. you seem super money smart i am sure you will make a good decision.

My loans don't actually need to start being paid until late 2009. So I'll consolidate once I am done with school December 2008 I suppose.

Thanks for all the help ladies!!

also ask your bank about the sailor solider relief act it will cut down interest rates of stuff before he was in the service, sometimes they will chop them anyway because he is deployed.

also ask your bank about the sailor solider relief act it will cut down interest rates of stuff before he was in the service, sometimes they will chop them anyway because he is deployed.

I wonder if that would be applicable. Probably not, my school loans are through the state of Massachusetts and the federal government and were obtained before we were married. And his truck loan is through Navy Fed.

if the student loans are just in your name then no. but the truck might be. you might just need a letter saying he is deployed. we got the interest on our car cut from like 7 to like 3 the last deployment in 02-03 paid it off that way too it saved us quite a bit in interest. can't hurt to call them and ask them to take a look at it.