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Optimal savings/debt level? Help!
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Date: May 11th, 2012 3:00 PM Author: swashbuckling brass cruise ship Brothers, this is the choice I face:
100k savings, 100k loans
50k savings, 50k loans
0 savings, 0 loans.
Huge factor: I have a low paying (50k/yr) job, so I can't replenish savings that quickly.
EDIT: Also, getting raped on the loans at 7.2% interest |
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Date: May 11th, 2012 3:02 PM Author: judgmental 180 bawdyhouse personal credit line If your job is secure, I would keep maybe $5-10k and pay down loans with the rest. (http://www.autoadmit.com/thread.php?thread_id=1946181&forum_id=2#20670252) |
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Date: May 11th, 2012 4:01 PM Author: drunken histrionic mad-dog skullcap yep. op is a poor and needs to act like it. even 10k in loans is $720 in interest per year which is noticeable on $50k/year income. Make it $5k or $10k in savings, but then keep it there and pay any excess to loans each month. personally, I'd make it $5k or even $0 if I had credit cards that had high enough credit for emergencies |
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Date: May 11th, 2012 4:04 PM Author: judgmental 180 bawdyhouse personal credit line There's a convenience factor to consider as well. If you have a few grand in the bank, you can autopay your CC and all your other bills without ever worrying about having enough cash on hand.
Might be worth giving up a couple hundred a year in interest. |
Date: May 11th, 2012 3:02 PM Author: nubile impertinent ticket booth internal respiration 0,0 You aren't getting near 7.2 in any responsible investment |
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Date: May 11th, 2012 3:08 PM Author: Ocher sandwich you idiot, you realize liquidity gets a discount rate too dumbfuck (http://www.autoadmit.com/thread.php?thread_id=1946181&forum_id=2#20670289) |
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Date: May 11th, 2012 3:12 PM Author: nubile impertinent ticket booth internal respiration That's a lot of jargon. Here in reality you are torching a lot of money. (http://www.autoadmit.com/thread.php?thread_id=1946181&forum_id=2#20670318) |
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Date: May 11th, 2012 3:13 PM Author: sickened coral lay candlestick maker 180 (http://www.autoadmit.com/thread.php?thread_id=1946181&forum_id=2#20670333) |
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Date: May 11th, 2012 3:18 PM Author: fragrant fiercely-loyal background story Greetings, BRUTALITY |
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Date: May 11th, 2012 3:22 PM Author: Ocher sandwich it means he might want more than a 7.2% return to bear the risk of losing his job and having 0 savings, you polisci shithead (http://www.autoadmit.com/thread.php?thread_id=1946181&forum_id=2#20670397) |
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Date: May 11th, 2012 3:51 PM Author: nubile impertinent ticket booth internal respiration Wait, you don't have parents to bail you out? That's scary and reckless. (http://www.autoadmit.com/thread.php?thread_id=1946181&forum_id=2#20670610) |
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Date: May 11th, 2012 3:55 PM Author: Ocher sandwich right, assuming he has no bailout possibility, would you still recommend 0,0? especially in light of his current 50k job which doesn't sound like he's all that skilled/marketable. (http://www.autoadmit.com/thread.php?thread_id=1946181&forum_id=2#20670634) |
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Date: May 11th, 2012 3:50 PM Author: Thriller Violent Puppy MFE (http://www.autoadmit.com/thread.php?thread_id=1946181&forum_id=2#20670603) |
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Date: May 11th, 2012 3:11 PM Author: lime vigorous associate jesus (http://www.autoadmit.com/thread.php?thread_id=1946181&forum_id=2#20670312) |
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Date: May 12th, 2012 12:50 PM Author: swashbuckling brass cruise ship (http://www.autoadmit.com/thread.php?thread_id=1946181&forum_id=2#20676037) |
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Date: May 12th, 2012 12:55 PM Author: Ivory Beady-eyed House Goyim ITE is crazy. Let's be risk adverse here. I'd pay off $80K and keep $20K. (http://www.autoadmit.com/thread.php?thread_id=1946181&forum_id=2#20676078) |
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Date: May 12th, 2012 12:55 PM Author: swashbuckling brass cruise ship I'm leaning that way too, brother. (http://www.autoadmit.com/thread.php?thread_id=1946181&forum_id=2#20676085) |
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Date: May 12th, 2012 1:06 PM Author: Ivory Beady-eyed House Goyim Paying a little bit of extra in interest is worth having the piece of mind to know that you have a nice stash in case things go bad. (http://www.autoadmit.com/thread.php?thread_id=1946181&forum_id=2#20676138) |