<prompt> Human: Say I have 30k in the bank.I have a 15k loan at 4.5 interest.I have another 6k loan at 3 interest.Should I:a pay 1.2kmo toward loans with no savingsb pay off the loans, and get to saving 1.2kmo, orc something else? Thanks,enemysnemesis  <response>: 4.5 and 3 are not entirely unreasonable interest rates. If 30k is your only source of savings at the moment I would first set aside an emergency fund of 4-8 months worth of expenses. Anything left over can go towards the 4.5 loan. Put any discretionary income towards the 4.5 loan while maintaining the minimum on the 3 loan. Once the 4.5 loan is paid off, I wouldnt put anything extra towards the 3 loan... just pay the minimum until its gone. 