Debt And Investments Utica NY

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

Alexis Kirk & Associates
(212) 572-9997
445 Park Avenue
New York, NY
 
Hudson Heritage Federal Credit Union
(845) 561-5607
243 Main Street, Suite 160
New Paltz, NY
 
AmeriCU
(315) 363-0148
280 Genesee St
Oneida, NY
 
Credit Advocate Counseling Corp
(212) 260-1450
237 1 Ave E 14th St
New York, NY
 
Elaine Ramos, LCSW
(845) 255-8014
42 North Chestnut Street
New Paltz, NY
 
Citizens Bank
(845) 256-3802
271 Main Street
New Paltz, NY
 
ACCESS Federal Credit Union
(315) 366-9840
2094 Glenwood Plaza
Oneida, NY
 
New York State
(585) 258-4505
109 S Union St
Rochester, NY
 
Oneida Savings Bank
(315) 363-2000
182 Main Street
Oneida, NY
 
Budget & Credit Counseling Svce
(718) 295-1313
55 5th Ave
New York, NY
 

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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