Personal Finance and Investing

If she has the discipline to keep making that $500 payment, she would pay out that debt in far less time. Typically, there is no prepayment penalty or limit on loans.

I think it's an excellent idea for her - keeping the caveat in mind. I know people who would go "Great! I've got all this headroom on my credit cards. Watch me go!" The worst offender in the bunch has so much debt that it's almost unfathomable. He lives in the cheapest rental he can find and drives a 17 year old Escalade, and lives by staying one step ahead of creditors and his debt that must be at least $300,000.

I have avoided debt my whole life, and have only ever paid interest on mortgages, and it's made my retirement possible. Not lucrative by ANY means, but I bring in almost enough to cover our monthly expenses, and have a bank balance that makes up the shortfall. As I told my now-wife, back when we were making plans "You're marrying the ant, not the grasshopper."

Her situation is somewhat dire, but totally recoverable. The very best of luck to you both!