Emotional Credit payoff vs Safety regarding real cost of living
Hi YNABers,
The KFW Student loans rate in Germany is getting worse and worse, I am a little bit scared for the next announcement - from the 1st of October they will rise the cost more to maybe 6.7% ish.
I really am torn between the two options: focussing on funding my underfunded and next month vs. Paying back aggressively. I know about the debates standpoints but still struggle with it.
My current contract ends in july 2028, if I would wanted to be debt free by then I would need to pay back three times as much as I am paying back right now monthly. 2.7k income, 650ā¬ for a loan per month would be rough, especially as I will have less hours and by that less money from beginning of 2028.
I could pay back 4k from my ynab money (like the non monthly things) on the first of December to lower the pressure a little.
For me the emotional drain matters more than saving here and there some euros. I'm else debt free and live in a payed off condo. The KFW loan was mainly used for sad dead parent stuff, I just would love to move on from that if that makes sense.
Soo - any opinions on paying back aggressively, paying back more per month or staying with the low rate till 2037 or smth?
Context how KFW works:
You can not spontaneously lower or rise the monthly payment or just send money as an extra rate. It is a state fund so you always have to announce that way in advance and from that point on you can't change it. So if I f.e. now decide on the next possible date, 1st of October, to pay back an extra amount for a single time, this wouldn't be booked till the 15th of December. This is basically what is holding me back from paying here and there back a little more, as I am scared to miss the mark in 6 weeks or so.