Better Option in Terms of Repaying Debt?

[Scott B.]

Hello All,

I have a general question in regards to what debt to pay down first. Currently my largest sources of debt are my condo I recently purchased in April 2018 and my student loans. 

At my current payment rate my mortgage will be paid off in 10 years, but as a young professional I realistically won't have the mortgage for the life of the loan. My question is would I be better off putting the additional payment to my student loans instead of the mortgage? Currently leaning toward putting the payment toward my student loans as the mortgage will be paid off once I sell the place and I would still have the student loans.

Mortgage interest rate is 4.75% and the student loans work out to be around a 3.78% interest rate.

Any thoughts would be greatly appreciated.

Thanks,

Scott

[Account Closed]

I would pay off the student loans first if you have to decide. That is debt that will not ever go away (even if you had to declare bankruptcy-God forbid). Also, as you pay down your condo, you will be gaining equity in the property. Have you thought about renting the condo out down the line? If you think you might be able to generate positive cash flow from it as a rental, then I would definitely pay the student loans first. Hope this helps.