Do no more debt damage
I’m returning to school to finish my degree this year, and I’m going to ask my girlfriend to marry me. We both have decent jobs, but I also have some previous student loans that I could put into deferment. Do you think I should pay off the debt before getting engaged?
Dear Dave,
I'm returning to school to finish my degree this year, and I'm going to ask my girlfriend to marry me. We both have decent jobs, but I also have some previous student loans that I could put into deferment. Do you think I should pay off the debt before getting engaged?
Colton
Dear Colton,
Congrats on finding that special someone! Now, if I were in your shoes, here's the way I line up my priorities.
First, don't do any more damage where debt is concerned. I want you to pay cash for your food, lights, water, gas for your car and housing. Obviously, you have to live, but I want you to all this without adding any new debt. The next priority would be to pay for college, and pay cash for your tuition and stuff from this point forward. Remember, no new debt!
After that, let's save up and pay cash for a nice, inexpensive ring. The student loan debt comes last through deferment. I'd really attack it with a vengeance after I was married, out of school and had an even better job and bigger income.
You're going to be a busy guy for a while, but I'll bet this lady's worth it. Gaining control of your finances now will be a great gift for you both when you start your new life together.
-Dave
Dave Ramsey is America's trusted voice on money and business. He has authored five New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover, EntreLeadership and Smart Money Smart Kids. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.
because a river that empties into Tampa Bay runs behind my home. Currently, I’m paying $1,070 a month for flood insurance. My house is worth $325,000, and water has only come up into
the yard twice in over 20 years. Since I’m doing pretty well financially, do you think I need to keep my flood insurance policy?
Trudy
Dear Trudy,
From what you’ve told me about the history of your property, it sounds like your biggest concern might be if a hurricane caused a backwash in your area. Insurance is already pretty
tough in Florida when it comes to those kinds of things, but you don’t want to run the risk of your house getting mowed down and losing everything.
If I were in your shoes, I think I’d like the protection of flood insurance. What you’re paying for the policy is such a small percentage of your world, compared to the value of your
home and your income. Keep the coverage, Trudy!