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Author: digrat Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 310986  
Subject: Investing or paying off debt? Date: 8/29/2000 8:29 PM
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I have seen a lot of questions about this on this board, but nobody seems to be in my situation. My husband and I are recently out of school. We just bought our first house (with a 20% down payment thanks to our meticulous budgeting during school). The only debt that we have is our mortgage at 8% and two student loans. One has a balance of $6000 and the other has a balance of $1500, both were subsidized, so we didn't pay anything on them earlier. They both come due at the end of October. The interest rate on them is currently 7%, but could go as high as 8.25%. We have about $4000 in savings. So here is the question: We put together a budget based on my husbands new job that includes student loan payments, our mortgage and other expenses. We know that we can live in this budget and realized that we have about 15% of our income that is unbudgeted. He can put up to 15% in a 401K through his work (with no match), or he can put up to 10% into a stock purchase program (after tax) with a 10% match, or we could build up our emergency savings higher, or we could pay down our student loans, or we could pay down our mortgage, or even invest through someone else on the side - what does everyone recommend? My husband really wants to just pay off our student loans so that we don't have to worry about them any more, but they are at such a low interest rate (which is tax deductible) that I would rather invest.

Thanks for any suggestions
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