Every year around tax time my mind always wanders to what I might do with my tax return. I have around $42,000 in student loans and a bit of credit card debt. My lowest student loan balance is around $600 which I will be paying off in full with my tax return. The question is, what will I do with the $800 or so I’ll have left over after that (assuming my return will be similar to last year’s. I’ll get my W-2 next week and will be able to do my taxes then). My lowest credit card balance is around $100, and the next lowest is around $450. My next lowest student loan balance is around $900 (and my highest balance is $15,000, a loan which I have deferred right now).
I’m really tempted to pay off the $450 credit card and use the remainder on an iPad Mini, because who doesn’t like buying themselves a new toy around tax time? Besides even if I allocated all $1,300 ish of my tax return toward my debt, that’s only 1/42nd of my mountain of student debt. Would it even make a difference? I might save $20 on monthly payments, what fun is that? Paying off the $600 balance will save me $110/mo which I’ll start putting toward one of my credit cards with a higher balance. I figure I want to pay off the credit cards before I start chipping away at the rest of my student loans which have higher interest rates and lower monthly payments…..
Anywho…..Debt sucks! Haha. And what do I have to show for my $50,000 English degree? Not very much, that’s for sure. 😉 Sorry for the rant!