Should I Put All My Money Into Paying Off My Student Loan? – Chester

“Dear Steve,

I am a recent graduate with 43,000 in student loan debt. I make about 30,000 a year. All my student loans are federal with interest rates ranging from 6% to 2%. My current monthly payments are $141/month. I have no credit card debt, no mortgage, and no car payments.

Should I be in a rush to pay off this massive debt? or should I start saving for the future? I just wondered if it would be smarter to hunker down and pay off the student loan in five years, or just go slow with it?


Dear Chester,

I feel like you need to develop a financial safety net and emergency fund at the same time you are paying down your student loan debt. If you apply all your extra money towards the debt and some financial surprise arises, what then?

The best way to get out of debt is with balance. That balance includes both saving money and reducing debt at the same time.

Another concern I have is your lack of credit. No credit is almost worse than bad credit. You need to get into the credit game to build your credit score in case you need it to qualify for insurance at the best rates, buy a car, or purchase a home.

You can build a great credit score without going into debt. Just follow this easy guide.

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Damon Day - Pro Debt Coach

Steve Rhode

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