Should we use all of our savings ($14,000) to pay down our total debt ($40,000), even if it leaves us with only $1,000?

We currently have two cars, and our combined debt on the two cars is $14,000. We also have $26,000 in student loans. We have $14,000 dollars in savings. Should we pay down our debt with the $14,000 we have in savings? This leaves us with only $1,000 dollars, but we could save the same amount each month to pay down our remaining debt. 

Debt, Financial Planning
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June 2018

From a risk perspective, you're depleting savings that would otherwise serve as a buffer in the case of large unexpected expenses which could put you further into debt. You should consider increasing your automatic contribution to your student loans (likely the higher interest rate) every month for roughly 10k. Enough so that you still maintain an "emergency fund". You'll still be able to pay off the debt fairly quickly while maintaining a buffer just in case something unexpected came up. 

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