Should you get rid of debt before investing?

Question

In this case I don’t have much debt in regards to credit but in past due college tuition payments. I have about $15k I have to pay back for school. I want to invest in real estate and don’t want that to hold me back. I’m paying that balance down little by little each month though. Should I focus on paying that off first before I invest or does it make sense to start my real estate journey and use the cash flow to help pay it off faster?

Theresa Harris · Answer

If you have $15K in student loan debt and are paying it off little by little (your words)-what are the interest rates, how long will it take you to pay it off, does it affect your ability to borrow for a mortgages (or save the down payment)? If it means you can't get a mortgage, then yes pay it down quickly.

If the interest rates are high (double digits)-think about paying it down faster. If they aren't too bad, can use the money to get a mortgage, rent a room in your house and use that income to pay down the student loan, you may want to think about it.

Chris Seveney · Answer

@William Johnny

How much $ do you have to start investing in real estate?

What type Of real estate investing are you looking to get involved in?

Should you get rid of debt before investing?

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