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.

First California Federal Credit Union
(559) 226-8282
2525 E. Shields Ave
Fresno, CA
Fresno County Federal Credit Union
(559) 252-5000
4422 W. Ashlan
Fresno, CA
Consumer Credit Counseling
(888) 684-2227
1920 Old Tustin Ave
Santa Ana, CA
Credit Bureau Services
(530) 673-5050
589 East Ave
Chico, CA
(818) 247-2600
500 N. Central #100
Glendale, CA
Alexander Mark J Law Office
(209) 577-1646
1500 J St
Modesto, CA
Consumer Credit Counseling
(619) 407-4385
706 F St
Chula Vista, CA
Operation Hope Inc
(510) 535-6700
3062 E 9th St
Oakland, CA
Bankruptcy Service Gold And Hammes
(408) 297-8750
1570 The Alameda Ste 223
San Jose, CA
The Golden 1 Credit Union
(559) 485-9145
6040 N Figarden Drive
Fresno, CA

Debt And Investments

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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).




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:

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

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