Debt And Investments Coalinga CA

Personal finance expert Mike Schiano explains why it's best to pay off your debt first rather than investing the money elsewhere.

T H D Credit Consulting
(310) 207-5333
11628 Santa Monica Blvd
West Hollywood, CA
 
Oakland Back Tax Debt Relief
(510) 992-6588
1301 Clay St
Oakland, CA
 
Credit.Com
(415) 646-0000
690 5th Ave
San Francisco, CA
 
Attractive Credit Inc
(619) 656-8300
2521 Windward Way
Chula Vista, CA
 
JB Settlement Group LLC
(916) 482-4255
2673 Ball Way
Sacramento, CA
 
Heartland Payment Systems
(559) 363-2898
26803 Fonda
Fresno, CA
 
National Recovery Control
(209) 870-3100
7333 Tam O Shanter DR
Stockton, CA
 
Credit Correction Service
(951) 788-0877
3824 University Ave
Riverside, CA
 
Fiscal Credit Union
(818) 553-8200
310 E. Colorado Street
Glendale, CA
 
Aurtion Solutions
(530) 898-0220
1074 East Ave
Chico, CA
 

Debt And Investments

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Dear YOUNG MONEY,

I am going to be a college senior and currently I have $11,800 worth of student loans. My internship this summer is paying me very well and I would like to start investing in a Roth IRA. I would also like to take this last year loan-free. However, with investing in an IRA I won't have as much to pay for this last year, which will possibly mean that I have to take out my loan. What should I do, take out the loan and invest in a retirement account or pay the year off? (The loan would be for $5,500 and the initial retirement investment would be $1,000).

Thanks,

Tim


Tim,

My advice is standard when asked whether to start saving or pay off currently held debt. Always pay off the debt first. Especially taking into account the way the stock market is acting these days, if I were in your position I would attack debt now and avoid taking on additional debt if I could.

There will be plenty of time in the future to begin investing. In the meantime, if you want to start to save some money at a decent interest rate, plenty of online banks are paying 4.5% or more interest on savings accounts.

Good luck and please keep us posted.

Mike Schiano

"The DebtBuster"


Listen to a Money Minute with Mike at: http://www.inchargeradio.com/MoneyMinutes/default.aspx

Visit www.inchargeradio.com and read Mike's book, "Spend Your Way to Wealth."

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