Should I Pay Off My Student Loan or Save for A House?

Should I Pay Off My Student Loan or Save for A House?
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• The Ramsey Show (Highlights):

[valeriagomez]

I did this!! I got out of debt before my baby was born. I don't have a house and we're in a 1 bedroom, but I feel like im rich because we can do EVERYTHING for our baby plus save for a house

[davidhepworth]

With an interest rate that low, invest the money instead.

[talyahr]

Put $15k on the student loan. Don't completely drain your savings, you need an emergency fund at all times.

[VirginiaRican]

I got a house FIRST, then refinanced it, then got a SECOND house and rented out the first. You will never prosper by just saving first because the price climb will outrun your ability to save.

[yavuzselimyavas]

*Creditlord* literally gave me a fresh start. Before, I was stressed out and exhausted from being turned down from lender to lender. As of now, I'm currently in the phase of purchasing a home. I'm more confident and I feel more secure.

[mannyjeanpierre]

Normally I'd say pay off all debts first but with that low low interest she should invest/save for a home. That loan isn't growing at all!!!!

[callmeosho]

0.05 you can literally put the money in a bank and let them pay off the loan with interest

[MrBellyman]

Dave "I don't care" Ramsey 😂

[mariad]

"You want to keep it around cus it doesn't eat much" 😂 😂 😂 😂 I'm dying here.

[sdm]

Both - i bought a house for $96k with $4k down in 2019 (definitely a lot harder to do in 2024), making $16/hr with no help. Since then ive gotten promoted to a $58k salary, ive paid off all of my $20k student debt, a $16k car loan, and only have $80k left on the mortgage. Grabted no emergencies occur, if you dont spend on vacations or luxuries, spend EVERY extra check or return you get towarss your debts, and be consistent, you will pay it off eventually.

[piersoncauwels]

This is crazy bruh. 05% interest rate?!?! Only one guy around recommending paying that off.

[jaghad]

Paying off a debt with 0.05% interest. Lol.

[blenblends]

Don't pay it off. Invest the money. The interest rate is very low. Whether you pay it now or later, it desn't make a difference. Instead, use the money to invest.

[patty]

Everyone knows she is going to buy that house.

[adamarcher]

I thought Dave said he doesn’t put having a family on hold because of debt? Now he does?

[jamesjazzy]

This guy just doesn’t get it. You’re going to have debt for the rest of your life taxes insurance healthcare phone bill water bill grocery bill car maintenance bill etc. etc.. Once you have “no debt” you realize just how much eternal debt you have- None of this is going away...ever...

[thegreatelv]

Everyone's idea is to not pay off the debt (pay minimum) and invest the rest of the money making much more in return, but the reality is 95% of people won't go and invest that money. Instead they keep that extra money as a "raise" and spend the money. So what ends up happening is they continue to pay minimum payments and then buy extra stuff or more debt. I think that is why Dave said what he said, because he realizes reality

For the majority of people it is smarter to pay off as soon as possible, so you aren't stuck to the debt.

[gaymoderate]

Dave is mad that she's right. Finally someone called with a scenario that debunks his baby steps.

[Juhiss]

Here in Finland basicly everyone takes as much student loan as they possibly can, even if they dont need it, because it's basicly free money. Many also invest it on stocks and ETF's and after graduating school they basicly have downpayment ready for apartment or house.

[b.cdrisk]

She should have stayed in Sweden and gotten free college. Anyway, I discourage anyone and everyone from moving to the USA.