Debt And Investments Flagstaff AZ

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

A New Beginning Credit Consulting
(480) 695-6435
P.O. Box 30522
Flagstaff, AZ
 
LifeLock
(480) 457-5110
60 E. Rio Salado Parkway
Tempe, AZ
 
Bednarz John Attorney At Law
(480) 507-6677
3651 E Baseline Rd
Gilbert, AZ
 
Private Debt Solutions
(480) 443-0313
15115 N Airport DR
Scottsdale, AZ
 
Finefrock Law Firm Pllc
(480) 584-4886
770 N Monterey St
Gilbert, AZ
 
Law Office Of Randall J Craig PLLC
(480) 767-0400
9449 N. 90th St. Suite 207
Scottsdale, AZ
 
Law Offices of Kevin Jensen
(480) 632-7373
3303 E Baseline Rd
Gilbert, AZ
 
Hendrix Law Office
(480) 507-0908
770 N Monterey St
Gilbert, AZ
 
Past Lives Healing LLC
(928) 300-1611
31 Spur Circle
Sedona, AZ
 
The Credit Pros
(928) 420-9352
1183 Luane
Prescott, AZ
 

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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