[aiekawl]

So, I am the bread winner right now. My husband has one more year of school and has incurred some high interest rate (9.8% variable) student loans. I have saved up just enough to pay off that balance. But, I have other debts such as my own student loan (only 3% interest rate but higher balance). There is also a hefty mortgage on our condo. Should I pay off his debt? Or my own first? Or paydown the mortgage? Which is the wisest choice?

[Fr_Chuck]

First as a married couples, a family should look at all debts as "thier" debts, so unless you have a divorce planned in the future, you want to look at what debts are costing you the most money.

First how is your income, is there good job security, since even if you pay down the mortgage, and then two months latter lose you job, you can still go into foreclosure, so there should be a few months living expense saved into savings before you do almost anything else.

After that what is the highest interest debt ? You pay it off first.

[oneguyinohio]

I agree with the above, but would also add that you might consider his health... I don't know ages or what insurance plans you might have, but if he were to die and you had paid off his debt, you would still owe yours, whereas if he died owing money, you would not be held responsible for his debt.

Another consideration for the two of you to make is if you'd feel more rewarded by having the home paid down... even though it might cost you more in interest to keep the student loans at the higher rate... if your job took a dive, you can have loans put into a forebearance due to financial hardship situations... not on home loans...

That might be well worth the extra interest charges to have that option...

If the two of you have financial styles of his money and my money, you also might feel more comfortable in paying on the home or your loans with your money... in the case of a divorce the home would probably be split equally as far as equity... just a guess... but you didn't mention any marital problems, so perhaps think about some sort of financial arrangement in writing and done with a lawyer perhaps where you and your husband agree that in exchange for paying his college loans to get rid of the higher interest rates, that in the event of a future divorce... he would relinquish an equivalent amount of equity in the house to you... I know that people do not like to even consider the possibilities of a divorce, but there are many stories of people splitting up... so you'd be protecting yourself financially, and if he agrees, then he obviously isn't planning to leave... if no agreement, then put a portion into either of the other options, after keeping back a nice rainy day fund...

[George_1950]

I would keep saving until he starts earning. Any chance you will be starting a family?