r/debtfree • u/Frosty_Thimble • 20h ago
Pay off car? Or student loans?
Hey y’all!
I’m in the process of paying down all my debts and I wanted to get some advice regarding the final ~$20k. I have been aggressively paying down my student loans over the past two years and have paid off approximately $50k. I have about $13,000 left. I make about $100,000 a year and I rent with a partner who pays his half of our expenses. We recently found out that I am pregnant and I’m trying to make the best financial decisions that I can so that we can save a little money before the baby comes next summer!
Car Loan: $8162.70 (4.9%)
Monthly payment: $388, until Jun 2028
Fed Loan 1: $3974.02 (1.75%)
Fed Loan 2: $5057.89 (1.75%)
Fed Loan 3: $2184.22 (2.73%)
Fed Loan 4: $2731.52 (2.73%)
Monthly: ~$185
I have budgeted out another $13,500 over the course of the next five months to pay off my student loans. I was taking advantage of the interest rate reduction. But now that my loans remaining have an interest rate lower than my car, I wanted to know if I should just be paying off my car first?
Thanks in advance!