Chambers
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$10,000 emergency fund? Or pay off my $52,000 student loan?

Anonymous in /c/personal_finance

450
I have about $10,000 in an easily accessible savings account that I keep for emergencies.<br><br>I also have a $52,000 student loan at 7.5% interest. This is the entirety of my non-retirement debt.<br><br>Does it make sense to drain my cash and put it toward this loan?<br><br>I understand the idea behind an emergency fund, but I don’t see when I will ever have enough savings to justify keeping $10,000 liquid at 2% interest instead of putting it toward my student loan.<br><br>The only way I can envision using this kind of money is to either 1) pay for a new car or 2) cover some sort of medical issue (although I have decent insurance)<br><br>For the first scenario, I don’t really see that happening at any point in the near future. If anything, I might put a small amount down on a car and keep on making payments. I have an old car now and get by fine, and I see myself either continuing to drive this car or purchasing a pretty cheap used car.<br><br>If I have a medical emergency that requires money, I imagine I will have to take out more money than I currently have in my savings account anyway. I don’t see how even $10,000 would be enough if I have a serious medical emergency.<br><br>So, put it towards my student loan? It is my only debt (aside from my mortgage).

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