Should I pay off student loan or buy a new car?

2 Answers

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  Pinyo on May 31, 2010

  Perfect timing for my most recent article: Dave Ramsey’s How to Drive Free and Retire Rich. In any case, I think paying off student loan makes better financial sense. Beside, do you really need a car — much less a new car. If you do need a car, I recommend buying a used car until you fully pay off your other debt obligations. No need to pile car loan on top of student loan.

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  PersonalFinanceCredit on May 31, 2010

  This is a good question because it depends on your situation.  If you really NEED the car to get back and forth to work then I would say get the car and increase your earnings using the car for work, etc.  Then use the money to pay off your school loans. In my opinion its better to keep making as much money as you can and keep paying off your school loans systematically.  Whereas, if you pay your school loans off, and don’t have a car, and can’t get to work….then, you wouldn’t be better off.  Yes, you would have a debt cleared but at what cost.  To me its always better to think cash flow(i.e. income) over debt, then you can pay off your debt. I found a lot of good financial tips at ConsumerFinanceTips.com You might wanna check them out too. Hope this helps.