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Focus On Paying Student Loans First Since There Is 0% Interest?





Focus On Paying Student Loans First Since There Is 0% Interest?
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22 comments

  1. Get a FREE trial of our life-changing Financial Peace University today: https://bit.ly/3dI2MF3

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  2. if you pay off the largest debts first you very well may end up paying more in the long run if it is a lower interest rate. Might now make that much difference depending on the numbers. You will definitely pay less money over time if you pay off your debts by the highest interest rates first.

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  3. well anyone who thought their student loans would be forgiven isn’t following along to what’s happening

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  4. Student loan debt is going to be forgiven. 0% was just the start. Then 6 month deferment was authorized. With all the socialism coming out of Washington, it is highly probable that a good portion of the outstanding student loan debt will be forgiven. If you owe less than $10k I would not pay on them when cc debt and other debt can be tackled

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  5. THIS WAS THE EXACT VIDEO I WAS LOOKING FOR!!!! All my friends are trying to convince me to invest right now because the market is down even though I'm (and they are) still on baby step 2. Thanks for the reminder to not lose focus just because the outside world is busy!

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  6. don't pay off your student loan they will be forgiven soon

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  7. “I’m from the federal government and I’m here to help” LOOOOL

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  8. Lol the government is actually going back and forth with the loan services because ideally the government wants those 3 months to be added to the end of the loan versus one lump sum payment which would likely cause most persons to enter a foreclosure.

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  9. I don't know about private loans, but federal student loans are temporarily at 0% and my automatic payments have been suspended (payment months will be extended by however many months they're suspended).

    If I were in that position with a few thousand in credit card debt and a lot more in federal student loan debt, I would take that gift of suspended interest and payments and put all my focus on the credit card debt. Knock it out, then you can have all your focus on the student loan debt.

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  10. So let me get this clear. He’s asking whether he should prioritize the BIGGEST loan with the LOWEST interest rate?

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  11. He needs to do the freakin’ MATH! THAT’S what he needs to do. U pay the minimum for all of ur bills and pay off whatever loan that charges u the MOST interest. Always pay the loan the charges u the most. mathematically, it doesn’t matter how much u owe, u will ALWAYS have more money if u pay off whatever loan charges u the most in INTEREST. If u EVER get to the point where u r not getting charged interest for ANY loan, DON’T try to pay it off… IT’S FREE! So why would u?!? 😳😳😳 it’s a waste. Just pay the minimum and that’s it! Put ur money in something that is guaranteed to make u money, if it’s even 1% APR, like, a high interest checking account. U will MAKE money from that. Just make sure u have access to the money fast for when u need it when u have interest again. Until then, save and make as much money as u can. Let THAT be a pat on the back. And don’t act like u can’t make money with ur money 😐. Not needing to pay ur mortgage for 4 months straight without any fees is but still needing to pay all 4 months after is still a help. It’s almost like getting 0% APR for 4 months on ur mortgage. U should take advantage of that if there’s no better opportunity. Guarantee itself more month with that money u haven’t used yet, after 4 months, pay all 4 months and keep the profit u made. I could make $11/m with $2k in 30 days right now. it’s not a lot but it’s something. Over 4 month, $44, plus the other payments, I’d profit about $99 by doing that. And if I kept paying my mortgage like normal, I would miss out on that opportunity… just do the math. Like… write it down…

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  12. Dave is not 100% correct in his analysis. Both the student loan borrowers and the loan service providers didn’t understand that it applied to only specific types of loans.

    Just another example of the Govt’s lack of common sense/plain language.

    The regs have been mostly cleared up. The number should increase annually as ppl who have loans actually eligible (both by type, employees, amount) – begin to apply for forgiveness.

    But ppl need to read! U may need to consolidate some of those old federal Loans (circa pre 2014?) to qualify them. Read!!

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  13. As a young person you should be maximizing your resources / liquidity. Common sense

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  14. I like how he says pile up cash when you're out of work lol most people can't pile it up when none is coming in

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  15. I'm lost. I just checked my student loans and it's still charging interest. When does this start and how does it work?

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  16. I think I have to go out of order on baby step 2 for this. My regular student loan payment (on an IBR) is 95% interest. This is a huge opportunity to make the balance actually decrease. I’ll still continue to make my regular payments on the other debts. Edit: I like the idea of paying a lump sum at the end of the automatic forbearance period.

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  17. Maybe someone in the comments, or Dave himself, could help me with this question. My wife and I both have stable jobs in this pandemic and we’re in baby step 2. With the student loan 6 month “forbearance”, should I stop making those minimum payments and throw that money on my smaller debts or should I keep paying the minimum payments even though I technically don’t have to? Any help would be greatly appreciated! Thanks!

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  18. 6 Trillion of corporate debt –
    Fed – Sure we'll bail you out again.

    1.5 Trillion student loan debt –
    Fed – Lol

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  19. Thank you for this I had the same question!

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  20. This question doesn't make any sense. Whether it be debt snowball or debt avalanche you would be going after the credit card first.

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  21. Agreed. This forbearance thing is could possibly cost people to lose their houses. This is so IMPORTANT why we need to have EMERGENCY FUND in place. So we can survive through situations like this.

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  22. If financial peace is free for two weeks why do you have to put your debit card down when you try to sign up?!

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