I am an in a position right now where I have enough savings to wipe out all of my debt, credit cards and the remainder of my student loans. However, doing so wouldn't leave me with a whole lot of savings. My condo is underwater by about $20k. I paid off my car last year so that isn't an issue.
In this economy, do you think it is more important to have lots of savings or no debt? |
I am in this EXACT position right now. I could pay off the entirety of my subsidized loans before I even started accruing interest on them by hte end of December. However, that would leave me with little to no personal cushion...a very scary thought. I am 100% anti-debt and anti-paying interest, but the thought of having less than 2 K in savings on hand is scary.
I might just wait a month or two - pay the interest for those months - then deliver uncle sam the wollip of a down payment and say GET OFF MY BACK
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