1 year, 4 months ago
via credit-qna.com
If you have a choice between making your credit card statement or putting money into an emergency account, which should you do?
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M$1 Answer
Having a choice between paying a credit card bill and putting money in an emergency savings account, I would definitely pay the credit card. Interest on credit cards is high at maybe 12% to 20%. You are lucky if your interest bearing savings account earns 1%. I’d rather avoid the high credit card interest rates that gain a measly 1%.
According to http://www.studentdoc.com/student-loan-debt.html the average student debt for a medical student is $100,000. That is quite a chunk of money to start your working life with.
I looked up on my student loan program how much payments would be on $100,000. They have three payment plans a graduate can pick from. The Level Repayment Plan offers the same payment amount throughout the life of the loan which is 10 years. This actually has the lowest interest paid. The Graduated Repayment Plan starts out with lower payments and raises them every two years until the 10 year limit. The Income Sensitive Plan goes by how much a person makes. The payments can be anywhere from 4% to 25% of income. With the current interest rate of 6.8% the payments on the Level Plan would be $1170.56 per month. The Graduated Plan would start out at $664.55 and end at $1991.09 per month. The Income Sensitive Plan would be dependant on how much the person earns and what percentage they would like to pay and would vary by year. If the income went up so would the payments. This gives you a little idea of what it would cost though. How much one would have to earn in a year to afford this is up in the air dependant on how much of their salary they care to pay on student loans.
Source: https://www.acs-education.com/CS/Jsp/loanoptions/ffelRepaymentCalc.jsp?NavBarId=sub21
According to http://www.studentdoc.com/student-loan-debt.html the average student debt for a medical student is $100,000. That is quite a chunk of money to start your working life with.
I looked up on my student loan program how much payments would be on $100,000. They have three payment plans a graduate can pick from. The Level Repayment Plan offers the same payment amount throughout the life of the loan which is 10 years. This actually has the lowest interest paid. The Graduated Repayment Plan starts out with lower payments and raises them every two years until the 10 year limit. The Income Sensitive Plan goes by how much a person makes. The payments can be anywhere from 4% to 25% of income. With the current interest rate of 6.8% the payments on the Level Plan would be $1170.56 per month. The Graduated Plan would start out at $664.55 and end at $1991.09 per month. The Income Sensitive Plan would be dependant on how much the person earns and what percentage they would like to pay and would vary by year. If the income went up so would the payments. This gives you a little idea of what it would cost though. How much one would have to earn in a year to afford this is up in the air dependant on how much of their salary they care to pay on student loans.
Source: https://www.acs-education.com/CS/Jsp/loanoptions/ffelRepaymentCalc.jsp?NavBarId=sub21
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