Comments on: Net Worth Update: May 2008

By: AndyS

AndyS — Thu, 05 Jun 2008 17:55:26 +0000

Great achievement and its always nice to be going up and hitting one’s targets!

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By: Stephanie

Stephanie — Thu, 05 Jun 2008 17:54:01 +0000

@Blogging for Money – It doesn’t really work like that, because it’s not compound interest right now. At the end of my schooling, all of the debt and interest will roll together and become the principal loan balance.

Also, it’s not between paying interest and paying a loan, it’s between paying interest, or putting aside money so that I can get a smaller loan. Kind of like a “down payment” for my last year’s tuition. I’ll run the math on this in a few months, when it comes up.

By: Blogging For Money

Blogging For Money — Thu, 05 Jun 2008 11:27:09 +0000

Wouldn’t be better to pay your loan first, because in the long run you’d get less interest? Let’s say you’ve got $1000 loan and 10% interest. So at the end of year your dept is $1000 + $100. So if you’re paying interest, you still have $1000 dept, But if you paid loan it would be $900 + $100 unpaid interest. And after second year your dept would be $1100 [1000 + 100] (first case) and $1090 [900 + 190] (second case). You save $10. Just my 2 cents.

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By: Chuck

Chuck — Mon, 02 Jun 2008 17:37:23 +0000

If you are interested in tracking your cars worth more accurately you could also plug its info into the Edmunds true market value (TMV) tool. I guess that is a bit overkill, but I enjoy seeing the number every month when I run my net worth calculations.

By: Давид

Давид — Sun, 01 Jun 2008 22:13:07 +0000

I had a lot of unsubsidized student loans when I graduated college. The interest was 6.8%.

I would not pay them off yet if I were you. That’s not a bad interest rate. It’s an above-the-line tax deduction.

Besides, paying off interest does not make much difference in your payment. You will be able to pay off the loan easily after graduation. Just look at my profile.

By: Stephanie

Stephanie — Sun, 01 Jun 2008 19:47:43 +0000

@Давид: It’s a tricky situation. The interest rate is 6.8% because it’s a Direct Stafford Loan (unsubsidized, which is why it’s wracking up interest while I’m still in school).

The reason it will take some thinking is that it’s between paying off the interest on the loans I already have, or putting the money aside to pay tuition for my last year, and lower the amount of further loans I have to take out. So, basically, the same interest rate on both. Both count as a reduction of the principal, because the interest on the current loan will capitalize into the principal if I don’t pay it off before repayment begins. So I guess it doesn’t matter… or maybe it does?

I’ll do a post on this when I get close to paying off my credit card, and it comes time to make the decision.

By: Давид

Давид — Sun, 01 Jun 2008 19:45:01 +0000

That’s interesting. Your blog automatically found my last post on NetworthIQ.

Depreciating your car by $50 per month is a good idea. That’s exactly what I do.

I am the same way as you, can’t wait to update my profile every month.

By: Давид

Давид — Sun, 01 Jun 2008 19:41:07 +0000

The decision to pay off the interest should depend on the interest rate. Don’t pay it if the rate is low. It might be the best rate you’ll ever have.

Давид’s last blog post..June 2008 Net Worth Report