My wife and I have around 200k of debt.
Here’s the breakdown:
Option 1:
What do y’all think?
TLDR: snowball method or avalanche method?
Here’s the breakdown:
- her car: 16k at 5.35% $350 monthly
- my loans: 120k at 2.8% $1550 a month
- her private loans: 33k total with various rates (monthly is $200)
- $9,278 at 4.66%
- $9,897 at 6.8%
- $8,035 at 3.86%
- $3,831 at 3.4%
- $1,103 at 3.86%
- $1,091 at 6.8%
- Her federal loans: 45k at 6.5% $400 a month
Option 1:
- tackle car first as it is fourth highest rate and having that $350 a month back would be nice. Could probably put 8-10k in October and then finish it off in January with next bonus.
- use bonus in October to pay the two 6.8% loans in her private loans which makes up almost 1/3 of that total. We did a lower payment plan if we want to put extra money towards it a month.
What do y’all think?
TLDR: snowball method or avalanche method?