Should I see a financial advisor?
I'm 26, and just finished graduate school. I got a job that provides me insurance, but pays less than $30,000 a year. Plus I don't really enjoy it that much. I have about $8000 in credit card debt, and about $28,000 in student loans. It's kind of freaking me out, and I want to just get it all paid off before I think about buying a car or a house or anything like that.
I would also like to start learning about investments, IRAs, etc.
Would a financial advisor be able to help me, or would it be pointless?
Look your a smart cookie so let's not panic. Lets save a few bucks and time by NOT seeing a financial advisor at this time.
I guessing that your credit card rate is much higher than your student loan rate.
Step 1. Call your credit card company and ask for a lower interest rate, if they refuse look for credit card with a lower rate and if you find one transfer the balance make sure the rate is lower and you can transfer without cost to you. You are doing this due to the fact you are unable to pay off the balance all at once, you're trying to save a few bucks in interest on future payments.
Step 2. Always pay off your highest interest debt (usually credit card) at the fastest rate possible. Why? This will get you out of debt faster and there are almost zero investments at your level of investing returning 14% to 21%, the rate most cards charge people with less than perfect credit.
Step 3. If my assumtion is correct and the credit card debt is higher than the student loan. Make minimum payments on the student loan until credit card debt is zero.
Step 4. Ask your employer if you can participate in their 401K program. If so ask if they have matching funds and the terms of the matching. ie. if they match the first 3%, contribute 3% of your salary, this is an instant 100% return. In your case 3% of $30,000 is 900 per/year or $75 per month, out of your pocket before taxes. A 3% matching means the company will contribute $900 per/year if you participate. Your HR department will give you the details on matching, vesting periods, etc. for your company's specific plan.
Always pay bills on time the goal here is to enhance your credit score which will affect the interest rate you pay when you do buy that house or car.
Stop freaking out! This is your first job out of grad school soon you'll be making a lot more money. The fact that you're worried and are seeking a solution makes me think you'll be just fine. Good Luck!
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