What to pay off the Dave Ramsey way?
jjhull03 asked:
I am about to start Baby Step 2.Here are my debts and interest rates: $2343 personal loan for carpet at 0%, $1590 personal loan for braces at 0%, and a student loan for $19500 at 1.625%. I have the cash that I can pay off the first loan, and the braces I use my flex health account at work to pay for pre-tax. However, with both of these at 0% should I just keep making the minimum payments and put the money in a high interest savings account? Or should I pay off the carpet now and the braces at the start of the new year when my flex account has money again and start paying double on the student loan? I think you will all tell me to pay them off and snowball, but I’m so scared and nervous!
Fermin Goldsworthy
I am about to start Baby Step 2.Here are my debts and interest rates: $2343 personal loan for carpet at 0%, $1590 personal loan for braces at 0%, and a student loan for $19500 at 1.625%. I have the cash that I can pay off the first loan, and the braces I use my flex health account at work to pay for pre-tax. However, with both of these at 0% should I just keep making the minimum payments and put the money in a high interest savings account? Or should I pay off the carpet now and the braces at the start of the new year when my flex account has money again and start paying double on the student loan? I think you will all tell me to pay them off and snowball, but I’m so scared and nervous!
Fermin Goldsworthy
For the payment datepay some each week if they allow it pay the loan and pay as much as much more quickly because normally the minimum on the loans with interest one point of dave ramsey suggesting that you will accrue less interest over the money in high interest savings accountbecause you might.
If you are going to do it the Dave Ramsey way then you need to start with the smallest debt and work your way up, honestly the interest on the student loan is not that high anyway and with the two small loans paid off it will be that much more to throw at it. .