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
 
Debtone Financial Solutions
(562) 424-2300
3605 Long Beach Blvd
Long Beach, CA
 
Consumer Credit Counseling
(661) 324-9628
5300 Lennox Ave
Bakersfield, CA
 
Debt Relief HGA
(714) 515-5097
2601 E Chapman Ave
Fullerton , CA
 
Credit.Com
(415) 646-0000
690 5th Ave
San Francisco, CA
 
Wilson J B Butte County Credit Bureau Corp
(530) 342-0132
310 Flume St
Chico, CA
 
Wolfe David B
(951) 682-4130
6911 Magnolia Ave
Riverside, CA
 
Credit Card Debt Consolidation
(435) 250-3416
443 Van Ness Ave
San Francisco, CA
 
Assist U Practice
(562) 984-2024
4401 Atlantic Ave
Long Beach, CA
 
Affiliated Consumer Control
(209) 572-3051
Po Box 5052
Modesto, 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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