Certified financial planner Jeff Rose answers:
How should I prioritize spending and saving from my take-home pay when I still have tons of student loans?
I've got $30,000 left at an average rate of 7%. How much of my paycheck should be devoted to general spending, saving, and paying those off? Can I get away with just paying the minimum on my loans? I don't have any other debt at the moment.
With more people than ever carrying large amounts of student loan debt, the question of how to manage it – so that you can get on with the rest of your financial life – is increasingly important.
Large debt is a drag on your future, so the issue becomes: Do you make a priority of paying it off, or do you spread your limited funds across several financial goals, and try to blend the debt payment into the big picture?
There's no one-size-fits-all answer to this dilemma, but there are a series of strategies you can implement that will enable you to move forward. Exactly how — and when — you put those strategies into practice will depend upon where you are in your life now, where you hope to go, and how quickly you want to get there.
View As: One Page SlidesSource: ASK A FINANCIAL PLANNER: Should I save money or pay off debt?
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