Which debt to tackle first?

Trailer is a toss up. Is it worth about $43,000 now? Like the other poster asked, are you going to sell it?

I would go:

Her loans
Your loans
Car
Truck
Trailer

I would think twice about pouring money into a depreciating asset. You just said no matter what you do its worth 8k less than today when you sell it.

Honestly my advice would be to get rid of the car payments before anything else. The student loan interest isn't a huge deal and pay the minimum on the trailer... but either pay the cars off or buy something cash and save the money

I follow the Dave Ramsey plan. Pay minimums on everything except the smallest loan.
Take all the extra money and work on paying off car 1st
Then focus on your student loans

Dave would tell you to sell your truck and find a reliable cheaper vehicle and pay it off

Then if you make it this far her student loans will be easy.

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But if you aren't having money issues.... ENJOY BEING 25

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That was the truck purchase. Neither the wife or I came from anything, so the truck was my guilty purchase (was a big one but I love it).

That's the thing. I make plenty to handle all the bills, and I contribute about 11% of my base salary into the 401k. I'm just trying to figure out what's best to do with that extra money. I know the big advice here is to max a Roth out, but I'm putting around 7-8k a year into my 401k, and I have a pension. So, I think I am on the right track at the moment when it comes to retirement. I also spend a decent bit in just enjoying life. I'm not too tight when it comes to doing things, and I've already built up a decent cushion in the bank. So, I just want to figure out what would be the best place to focus the extra money after all the above is done and taken care of...

Edit: I know I'll get coached on putting more than the company match into my 401k while I have the debts I currently have. Maybe it's an accountability thing, but I like knowing every check I'm contributing a decent bit to my retirement. I don't want to neglect the retirement to focus on debt, and then have a bad habit of not contributing linger on later in life...

Figured I'd get a lot of responses like this instead of actually trying to answer the question I posted... I'll make 115 this year and and will gross 120-140 from here on out. Figured I'd have something nice while working so much.

I have to have a 4 wheel drive truck for where I go hunting wise... A brand new 4 wheel drive truck doesn't run 20k these days, but I'm explaining something I don't need to.

I'd pay off the trailor first since it has the highest interest

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Figured I'd get a lot of responses like this instead of actually trying to answer the question I posted...

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Your question was what debt to tackle first. And we're telling you to get rid of the truck.

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I have to have a 4 wheel drive truck for where I go hunting wise...

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That isn't a have. It's a want.

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If you can mange to self contract, put some elbow grease into the home; lay your own floors, do the trim, paint, landscape, etc. then you'll walk in with some solid equity.

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So, this here is why I live in a trailer instead of renting or owning another home. When I do build I'm going to contract it out. I'll also do the electrical, plumbing, trim, flooring and other small item jobs. So, I knew going in I would lose on the trailer, but I needed to be on the land if I was gonna realistically contract it out myself(w/ help).

Also the house has to wait since I'm just not ready to build a home. Plus this isn't won't be a stater or stepping stone home for me. Since it's on family land I'll live in it forever...

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It sounds like you have a spending problem.

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I have no credit card or other high interest debt (outside of the home). Outside of the months where I paid for a wedding, I bring in quite a bit more than I spend. If owning a new truck constitutes a spending problem...then I guess I have one.


My plan- pay trailer off in a couple years. Build house in 5-8. Sell trailer after completion of the house and use that money to payoff the student loans.


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Anyways, I'd tackle your wife's car loan first. And then with your wife being a teacher see if she can qualify for loan forgiveness after 10 years of payment, $60K is a big loan number for a teaching degree. I'd then focus on knocking out the truck as quick as possible so you don't have a $600 payment hanging over your head for the next 5 years. Your student loans would be next, use some of the money you were throwing at your truck loan to pay off student loans. I wouldn't be too concerned about the trailer because you don't NEED to build a house in 3-5 years, build one when you are financially ready to.

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Appreciate the response. She has/is exploring loan forgiveness. She does have a masters just not fully using it. Focusing on her car note first? Is it to follow something similar to the Dave Ramsey snowball method. I've read his stuff and it works.. It's just that I was trying to squeeze the most out of the debt payments. 10 years from now how do I come out paying the least amount in interest...

There is a lot of shifty advice here, so I'll help you out.

Reduce your 401k contributions to the minimum required to get the company match. Do not fund an IRA until your trailer is paid off.

Pay off the trailer first. It's the highest interest rate and close to the smallest balance. It's also secured debt and it is secured by your home. This is an absolute no brainer.

Pay off her car next. It's a low interest rate, but it's a small balance, so paying it off will decrease your total debt service the most.

Start funding a ROTH if you are eligible, keep 401k at match minimum.

Price out refinancing your student loans. You have a pretty good rate, but you never know what's out there.

Your student loans because of size, even though the rate is sloghtly lower.

Her student loans.

Your truck.

I understand wanting to have a nice vehicle if you are working all the time. You probably "shouldn't" have bought such a baller vehicle, but it sounds like you can make it work, so props to you.

Come and find me somewhere if you have questions.