Need advice on next phase
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|Tue, 11-15-2011 - 6:44pm|
Firstly I just want to thank you all for your kind words and encouragement regarding the CC debt. The supportive atmosphere and group celebrations are what has made me stick around even during the rough patches!
So now I am already thinking about the next phase. Once I pay off the small student loan (should happen before the end of the year) I am left with:
Car loan: $11k at 0.9% interest, $140 bi weekly until January 2015
Large student loan: $23K at prime + 2.5% interest, $225 a month for 117 months (HA). I will pay $275 (snowballing in the small student loan payment). Interest is a tax credit (at 15%) so I get back 150 for every 1000 in interest.
My instinct was to just do what I`m currently donig and throw every little bit extra at it. However, I`m liking the idea of bulking up my retirement funds. I have over $30k in contribution room for my RRSPs (I`ve been working since I was 14). So part of me is tempted to throw everything in RRSPs and then take the 40% return and do a once a year lump sum payment. This will significantly reduce my payoff time, but will allow me to build up my retirement funds at an early age so that compounding interest can do its thing.
What do you think. I can see the pros and cons in both , , ,