Savings vs. Debt?
I have a ton of student loans - how should I balance saving with paying off the loans? Does it make sense to save much less and pay much more, save nothing and pay my loans aggressively, or save a great deal and pay my loans conservatively?
You should always be saving. However, in my opinion I would work to pay off my student loans in a shorter amount of time. Otherwise, you end up paying a lot more than the original loan. Once your loans are paid off, you will probably have a good deal of money more to save.
It depends on the interest rate. If it is low (3 to 4 percent range), don't worry about it too much. You can get a better return investing. You don't want to tie up your cash flow paying off low-interest lo
Right. Don't focus all of your available cash flow on paying them off. Be sure to be making your maximum IRA and 401K contributions before looking at student loans.
If you loans, I suggest you to find work to keep up your payments. The loans will eventually pay off, but if you don't have steady income, you'll probably incur more.
You need to a strike a good balance between paying your debt and making some savings. Some considerations are your capacity to pay, interest rates and income generating prospects. As stated, you can aggressively start paying off your debt if you have an additional source of income.
saving should come first. no matter how small the amount, you must discipline your self to set aside a portion of your monthly income
I would save money first and set aside a certain amount. Student loans are usually a low percent so you should be ok taking your time paying them back. Just make sure you make those payments on time.
[QUOTE=milo07;1061]I have a ton of student loans - how should I balance saving with paying off the loans? Does it make sense to save much less and pay much more, save nothing and pay my loans aggressively, or save a great deal and pay my loans conservatively?[/QUOTE]
I think it is good to save a little, even though you have student loans to pay back, other things come up. Pay your student loans, but also be prepared for other emergencies.
As long as you can make the minimum monthly payments, I wouldn't worry about the student loans. It's more important to build an emergency fund. If you have to use credit cards because you are strapped trying to pay student loans, you will be at risk for real financial problems. If you put extra money on your student loans, you can't call them up and get it back to pay for a car repair.
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