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Reply to "Savings - screened porch v college?"
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[quote=Anonymous][quote=Anonymous] My car loan - [b]2.5 years left on it, 2.6% interest rate - $383 monthly payment - have a HYS at 4.3% now[/b], just not going to pay that off early. My student loans - [b]$28K left - at 6% [/b]and I have a plan to pay off in 4 years also. (For whatever reason I’ve decide that the interest rate is the price I’m willing to pay to have 4 more years to pay this off.) [/quote] This combination of facts makes no sense. You're doing too much mental accounting--these things are not in separate frames from one another, they are all in one frame in which you have one debt it makes financial sense to keep and one debt it does not, relative to the interest being paid on the basket of money you owe. How much is in the HYS? [/quote]
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