Love the IG and happy to be here now! I’ll try to be as clear/brief as I can with my background before posing the question. My situation is pretty specific.
I’m 29 and I pull in just under 100k total before taxes, and about half of it is untaxable because I work for the military. Since my most recent promotion, I’ve been living off of about 50% of that because I have been debt snowballing for 2 years now. 75k in debt is now about 28k (all student loans) and for the first time in my adult life, I have a positive net worth! It’s only about +3k, but every bit counts.
I have just about $17k in the federal TSP and I’m contributing 5% ($304/mo) to get the agency match. $1k is in savings and I live off of just about $4k/mo, and $2600 goes to my remaining student loans. Scheduled payoff date is March 2021. Yay!
Here is the curveball: I’m about to get married. She is incoming with about $3k in credit card debt (not bad) but a whopping $250k in student loans after law school. Her particular field isn’t the flashy BMW driving kind of law everything thinks about, so while we aren’t going to be rich we won’t be going broke either. Oh, and her interest rates vary between 5-7%. So here is my question.
My plan is to continue paying mine off, then move to fully fund 3-6 months of expenses, and then max out my TSP while I am still in so I can take advantage of the super low fee structure. That would leave about $800/mo left over to boost our monthly spending a bit and reward ourselves for getting this far, while saving $1k/mo for a down payment on a house in the 7-10 year timeline. Meanwhile, we are living solely off of my income and her entire paychecks go to pay down her balance, which takes about 10-12 years. After that point, we would roll her payments to max out a 401k, IRAs for both of us, and then spread out the remaining balance.
I’m curious your take on this. I know the mathematical answer is to take my future $3100/mo debt snowball and apply it to her balance to get out faster (5-6 years) but I don’t know if that is emotionally feasible to do for that long. I just wanted a reputable human’s take on the situation. Thanks!