Woot!!

TeamRivera08 · February 2010

DH's student loan company FINALLY started offering interest only payments, so he applied...and it was accepted!!!!!!!!!!!! Saving us $350/month!! Plus starting in April, our rent is going down $60!! And, after two years, his student loan pymt will only go up about $100, so we're still saving. Woot!!

ariajean · February 2010

Smack me for being Suze "Debbie Downer" Orman, but this seems like sort of a mixed blessing.

Interest only is dangerous. You're making room in your budget now, but you'll be paying out much more money over time due to compound interest. Might be nice in the short term, but if you're not paying down that principal...you'll be in debt a long time and your credit will suffer for it, causing other things (cars, homes, credit cards) to become more expensive.

TeamRivera08 · February 2010

True, except his student loan payment alone (not including his federal loan, any of my student loans, or credit cards and car payment) is $850+ dollars a month. We pay nearly $1500 a month in student loan payments,so this is a very good thing. We do not plan on paying the interest only forever, just until we can get other things paid off and where we want to be financially (savings, etc). We already know we'll be in debt for a while, and this is our biggest issue - credit cards are a non-issue for us, and we both have good credit. Our plan is to do his interest only for the two years, and then pay extra after that.And it was the only place where we could make any adjustment.

ariajean · February 2010

Oh, well that's good. What a releif.

kdonedizzle · February 2010

Sounds like you thought it out well.....Congrats on the lower payments.

jweat013 · February 2010

It sounds like it's going to make a huge difference! That's great!

veruca5839 · February 2010

Seems like it'll work out for you! Glad to hear it!

amlinton1615 · February 2010

Awesome news!!! Saving $$$ is always good news!!

Agentmysterycat@hotmail.com · February 2010

Niiiiiiiiiice

TWiNKfly · February 2010

ariajean:
Smack me for being Suze "Debbie Downer" Orman, but this seems like sort of a mixed blessing.

Interest only is dangerous. You're making room in your budget now, but you'll be paying out much more money over time due to compound interest. Might be nice in the short term, but if you're not paying down that principal...you'll be in debt a long time and your credit will suffer for it, causing other things (cars, homes, credit cards) to become more expensive.

Ditto. I would cut elsewhere. There's a reason student loan companies make those offers -- you will be paying much, much more in the long run. If you had, say, $75K in student loans it now could be as much as 125K after you get finished paying.

But I guess if it's all you can do, it's all you can do. I hope you guys are able to get back on track!

Woot!!

Re: Woot!!

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