Paid off credit cards. Now what?
November 16, 2006 10:06 AM Subscribe
What to do with $1200 more a month?
posted by gaspode to Work & Money (23 answers total) 2 users marked this as a favorite
I've looked at the threads about what to do with a lump-sum, but I'm looking for a bit more advice. Having just paid off our credit cards by following a strict budget, my husband and I now have $1200 per month to deal with. We currently put $250 per month into a 5 % APY CD, and about half the maximum into an IRA. We have combined student loans of about $60,000. Mine is based in New Zealand and because I'm living out of country, is racking up 7% interest. His is here in the US, with lower interest, but his principal is around $45,000. What is the best way of using our freed up money? We thought of putting the max amount into the IRA and then trying to get aggressive on my student loan. We have no other debts. Is this sensible? Should we be putting more into savings? (We live in New York City and won't be buying a house anytime soon).