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I have $23k in student loans and pay $400/mo on them. I have about $2500 left over after my bills each month. I have a 401k and am already contributing the maximum on it.

Does it make sense to spend my excess income to reduce my student loan debt to $0 to free up my $400 each month, or should I find some kind of investment to put it in? My wife also has similar student loan debt and I was thinking of tackling hers after mine.

From my little understanding of the stock market it doesn't seem like it had been performing too well lately.

Looking for advice on how to proceed to utilize my excess income and maximize my returns.

Thanks in advance.

Chris W. Rea
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jacksonecac
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1 Answers1

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From my little understanding of the stock market it doesnt seem like it had been performing too well lately.

This is irrelevant.

Looking for advice on how to proceed to utilize my excess income and maximize my returns.

Pay the loan.

A loan is a guaranteed cost. Investing is a maybe gain (and a maybe loss); whether or not the stock market has done well today/yesterday/this week/this month/last year/whatever doesn't matter. Just pay the loan unless you have some other nearish term goal for your money; or other debt that costs more than this loan.

quid
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