Re: A General 401k/Loan Repayment Finances Question[ Edited ]
04-13-2012 12:39 PM - edited 04-13-2012 12:40 PM
No, paying off an installment loan isn't a huge factor except for DTI calculations on a mortgage or auto loan.
Keep contributing to that 401K, that annual rate of return is compounded, so money you put in now, counts for quite a bit more than money you put in 10 years from now. Never give up a long-term benefit for short-term satisfaction financially, and arguably you may be doing yourself more harm even from a FICO perspective within the next decade by paying that student loan off early. I'm not seeing really any short-term upside other than pride/emotional benefit of getting it paid off. So you'll be there in 1.5 or 2 years instead of 1, it doesn't matter rationally.
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