<#-- Rebranding: Header Logo--> <#-- Rebranding: Footer Logo-->

Should I use most of my savings to pay off my student loans?

I have a large amount of student loan debt (around $64,000) but no other debt. I also have a good deal of savings and recently received a windfall. I now have enough to pay off my student loans and still have around $12,000 left over as my emergency fund, but I'm worried because I'm self-employed and I can never be sure of my income. Also, my husband and I are trying for a kid and that would add a whole new bunch of expenses to the list. Is it a bad idea to wipe out most of my savings, but be debt free?

Sort By:
Most Helpful
May 2019

Based upon what you outline you should keep at least 6 months worth of expenses for emergency reserves in cash especially being self employed. You can use the excess to pay down debt.

last month
5 weeks ago
last month
last month