http://www.paidtwice.com/2009/03/18/tell-all-wednesday-debt-down-savings-up-edition/#comment-89577 NL Wed, 18 Mar 2009 20:18:57 +0000 http://www.paidtwice.com/2009/03/18/tell-all-wednesday-debt-down-savings-up-edition/#comment-89577 I've got to tell you I'm concerned by your plan to pay of your student loan at such an extreme rate - at the expense of an emergency fund. Your student loan interest rate won't increase, if you had an emergency you could always get a deferment or forebearance on your loans, or negotiate a lower payment. However, you won't have any cash! That extra $150 a month could fund your emergency fund - and truly, $2500 in a fund is far too little. You should aim for a minimum of six months of expenses. I’ve got to tell you I’m concerned by your plan to pay of your student loan at such an extreme rate - at the expense of an emergency fund. Your student loan interest rate won’t increase, if you had an emergency you could always get a deferment or forebearance on your loans, or negotiate a lower payment. However, you won’t have any cash! That extra $150 a month could fund your emergency fund - and truly, $2500 in a fund is far too little. You should aim for a minimum of six months of expenses.

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