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Paying off Student loan vs Car loan vs investment?

Dec 10 2010 7:22am#1 (permalink)

dennisjackson123

Anonymous Visitor
Avatar for dennisjackson123		Hello All,

Thank you in advance for providing feedback on the following situation...

I have 25k in student loans (4.5% interest), a car loan 25k (5% 6 year loan), and I have about 25k in savings.

I am wondering if it makes sense to pay off one over the other (yes I know a car depreciates, but I pay 500 a month for a car payment, where I'd then be able to save 500 a month moving forward and pay towards other things while still having some equity)..

My student loan payment is 200 a month and I feel like everyone has student loans (my credit is 700+), would it make sense to pay off this or try and negotiate with my student loan lender and see if they'll take 20k or maybe even 15k??

Lastly, as opposed to paying off either because I can handle my bills just fine at the moment, would it make more sense to invest the 25k and continue to pay for a couple years my bills and tackle paying them off down the road (say a year or two for now)

Thanks for feedback!

pay day loan

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