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. The Dave Ramsey Show is heard by more than 8.5 million listeners each week on more than 550 radio stations. Dave’s latest project, EveryDollar, provides a free online budget tool. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.
