Yusra3
VIP Contributor
Paying off your student loans can be a long process, but it doesn't have to be.
Many people choose to invest their money instead of paying off their student loans because they believe it will earn them more money than paying off the loan. But is this true?
It depends on what you're investing in. If you're going to invest in stocks or bonds, then it's definitely true that investing will earn you more money than just repaying your student loans. However, if you're going to invest in real estate, then there's no way It will earn you more money than just repaying your student loans and maybe even lose money!
So keep in mind that whatever decision you make about whether or not to pay off your student loans should be based on how much interest you'll be saving over time by doing so versus how much interest will be earned by investing your money instead.
According to a recent study by TD Bank, millennials are more likely to invest in stocks than pay off their student loans. In fact, 62% of millennials say they plan on investing in some form over the next year, while only 26% say they plan on paying down their student loans.
It's not surprising that millennials are choosing to invest: their average student debt is just under $35,000 and has been rising steadily over the past decade. The average student loan balance was $31,000 in 2016 and will be $32,000 this year, according to data from Experian and TransUnion. So if you're looking for ways to save money and pay off your debt faster, investing might be right up your alley!
We all know that investing can be risky but it doesn't have to be expensive or complicated either! There are plenty of ways to start investing without breaking the bank or becoming completely overwhelmed by financial jargon.
Many people choose to invest their money instead of paying off their student loans because they believe it will earn them more money than paying off the loan. But is this true?
It depends on what you're investing in. If you're going to invest in stocks or bonds, then it's definitely true that investing will earn you more money than just repaying your student loans. However, if you're going to invest in real estate, then there's no way It will earn you more money than just repaying your student loans and maybe even lose money!
So keep in mind that whatever decision you make about whether or not to pay off your student loans should be based on how much interest you'll be saving over time by doing so versus how much interest will be earned by investing your money instead.
According to a recent study by TD Bank, millennials are more likely to invest in stocks than pay off their student loans. In fact, 62% of millennials say they plan on investing in some form over the next year, while only 26% say they plan on paying down their student loans.
It's not surprising that millennials are choosing to invest: their average student debt is just under $35,000 and has been rising steadily over the past decade. The average student loan balance was $31,000 in 2016 and will be $32,000 this year, according to data from Experian and TransUnion. So if you're looking for ways to save money and pay off your debt faster, investing might be right up your alley!
We all know that investing can be risky but it doesn't have to be expensive or complicated either! There are plenty of ways to start investing without breaking the bank or becoming completely overwhelmed by financial jargon.
