Pay Those Loans Off First

Even with a student loan, Eva and her husband want to move up in house since he's out of pharmacy school. But it may not be the right time yet.

QUESTION: Eva’s husband will graduate from pharmacy school in May and has worked part-time for several months. They have $120,000 in student loan debt. He is about to make $130,000 a year, and they will probably move to another state and buy a home. Should they refinance and put the student loans on the new house? Dave doesn’t like that at all.

ANSWER: You’re $120,000 in student loan debt. You don’t need to buy a freakin’ house! You are used to living on nothing, so keep doing that while you clean up the student loan mess. Rent and live on nothing until that happens. Don’t keep these student loans around too long. Keep paying the price like you’ve been paying to sacrifice and win.

Clean up the mess fast, and sacrifice to do that. You know how to sacrifice to win, and if you can do that for one more year, you can win. Sell the house and pay down on the debt, and rent while you finish off the student loans. With those 2 things, you’re out of debt by next year.