http://www.paidtwice.com/2009/03/13/debt-elimination-vs-increasing-savings-the-ongoing-debate/#comment-88564 Laura Sun, 15 Mar 2009 18:20:24 +0000 http://www.paidtwice.com/2009/03/13/debt-elimination-vs-increasing-savings-the-ongoing-debate/#comment-88564 I've been wrestling with a similar problem. I too have an older student loan -- at a fixed 7.25% interest rate. (I consolidated before the recent spate of interest falls, back when anything below 8% seemed like a huge discount.) I really REALLY want to pay it off and get that debt from around my neck. But I also want to go back and finish my bachelor's degree (which should take maybe six months of online school) and I also want to save six months of living expenses so I can exit my current job and test-drive my dream of being a full-time self employed writer. I've been thinking the best thing may be to split efforts -- take my pool of extra money for the month and divide it evenly between all three. I’ve been wrestling with a similar problem. I too have an older student loan — at a fixed 7.25% interest rate. (I consolidated before the recent spate of interest falls, back when anything below 8% seemed like a huge discount.) I really REALLY want to pay it off and get that debt from around my neck. But I also want to go back and finish my bachelor’s degree (which should take maybe six months of online school) and I also want to save six months of living expenses so I can exit my current job and test-drive my dream of being a full-time self employed writer. I’ve been thinking the best thing may be to split efforts — take my pool of extra money for the month and divide it evenly between all three.

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