Submitted by scrooooooooooge t3_127zsqr in personalfinance
cakeandale t1_jeh2k23 wrote
Reply to comment by DifficultyNext7666 in Should I pay off my loans if I have the savings for it? by scrooooooooooge
That’s generally good advice, though for right now 4.14% is near the balance point for savings vs debt. Savings interest is taxed as income, and if OP is in the 22% tax bracket ($44,725-$98,375) they’d need to get 5.3% interest to breakeven post-federal-tax (likely slightly higher depending on state taxes).
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