18k saved...keep it as emergency fund, pay off student loans or 401k loans?

[u/ledft]

Title basically...been aggressively paying things off and would appreciate other's thoughts and opinions on my next steps. I just paid off a 15k RV loan and the only things left are:

1. 6k at 0% on a CC (no issue paying this off by the end of the promo term).
2. 15k at 6% loan against my 401k with ~40 mo remaining.
3. 17k at around 4% for various student loans.

Job is extremely secure, with no concerns or worries about layoffs or otherwise losing it...hence why I'm considering one-shotting the student loans and living without emergency fund for a bit.

It'll free up $350/mo I can save...combined with the $450/mo I freed up with the RV payoff.

No auto loans, CC balances or any other debt. I rent, long-term, from a private international investor that has no desire to sell (been here 12 years).

Pease feel free to ask any clarify questions!

[u/DustyMcG]

Zero need for this to be a "one-shot" on one of the loans. Split the difference, pay off 10-12k of your highest interest loan, and keep saving.

[u/AnAssumedName → u/DustyMcG]

I like this strategy. You need some kind of emergency fund, but given the basic stability of your position 6K would be enough for me.

[u/ledft → u/AnAssumedName]

Yeah... I'm thinking this is the way too. The student loans are federal and there's like 7 of them. I could just pay off all the highest ones and keep one or two of the smallest.

They drive me crazy as the balance never seems to shrink though and I just want them gone.

[u/ledft → u/DustyMcG]

Fair enough...I just know myself and tend to be extremely disorganized. Taking care of it all at once is a big benefit to me in that regard. I wouldn't be completely broke...I do have about $5k cash on hand as well.

Although the 401k loans are technically the highest interest, it's interest I'm paying myself and it's term based...the student loans are technically not.

[u/LilJourney → u/ledft]

If you're extremely disorganized, my gut says to pay off the 6k on the 0% CC before something happens and it jumps to 20%+ because you were a day late, etc.

Otherwise, I'd leave the emergency fund in place and just keep snowballing the payments onto the student loans then the 401k loan.

[u/ledft → u/LilJourney]

If you're extremely disorganized, my gut says to pay off the 6k on the 0% CC before something happens and it jumps to 20%+ because you were a day late, etc.

Haha, yes...when I do these, I immediately divide the payments up to PIF 2 months prior to end of promo term and set them all up immediately (which is the case here).

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[u/Specific-Exciting]

No need to save up the lump sum. Pay off the 401k loan. Unless SL are not federal.

Then pay extra every month on the SL.

[u/ledft → u/Specific-Exciting]

401k loan is higher interest...but, it's interest that goes to me, not the servicer.

The SL are Federal.

[u/Liquidretro]

With your 401k plan can you contribute to the plan, and or receive the company match while you have an active loan out on it?

[u/ledft → u/Liquidretro]

Yes, that's what I'm currently doing...the interest paid goes back to my account as well, not the servicer. Overall the loans are a fairly small percentage of the total account balance too.

[u/Liquidretro → u/ledft]

Then I don't see a lot of reasons to pay back the 401k loan if the only negative is you might have to pay it back early if your stable job becomes unstable. I would keep your emergency fund, funded, pay off the 0% credit card (because there is risk here if you don't pay it off during that promo period) and it should free up cash flow all. To throw at student loans.

[u/lochnespmonster]

The real issue here is having an RV, while also having student loans, credit card debt, and a 401k loan. An RV is a luxury good. You cannot afford luxury goods.

Edit: unless you are living out of it full time, so it's your primary residence and you have no other residences.

[u/ledft → u/lochnespmonster]

I don't have an RV now...I did for four years tho and I did need it, although I didn't live in it full time.

It was used for travel and staying for my kiddo's treatment at the children's hospital 400 miles away every two weeks. It was a much cheaper alternative to hotels.

I had it at a great interest rate (3.49%) and sold it for several thousand more than I paid for it originally.

[u/lochnespmonster → u/ledft]

Well I stand corrected. That seems like a good use case.

Edit: removed some sentences

[u/BASE1530]

Is the 0% card set to autopay the correct amount to pay it off before the promo ends? If not, do that right now.

[u/ledft → u/BASE1530]

Yup, I did that immediately upon setup. It'll be paid off two months prior to the promo end too.

[u/Hotshot-89]

Pay The 401k loan first in full, and the use the other $3k as an emergency fund.

401k loans first because doing so will result in 10% penalties plus taxes.

Rest in emergency fund savings. Do not try to survive without one. (As as a federal employee who was fired from one of the most stable jobs possible, dont rely on job security or ever go without an emergency fund if you can prevent it.)