Quote:
Originally Posted by R8ers
Would you borrow 5k more to put in the bank? Then why would you hold a 5k debt when you have triple that in cash to pay it off?
Pay off that student loan and get it out of your life...
Mortgage, you make the call on that, thats a personal choice,My personal choice was to pay it off in full and kick wells fargo to the curb.
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That's just stupid and myopic. If the $5K loan is accruing interest at 4% and the money market is making money at 10% then you've just lost 6% by paying off the loan instead of investing it.
Same goes for the home mortgage. Sure, if you're just going to stuff the cash in a mattress then pay off the debt. But if your rate is 5% and your ROI in the market is 20% /yr averaged over the life of the loan well you just earned a nifty 15% on money that otherwise would have gone in the can.
The only debt one should rush in an "at all costs" fashion to pay off is credit card debt. Christ, right now if got an ARM home loan your rate is actually lower than it was 3 years ago.
I know you like to fellate yourself from atop your high horse for your financial "savvy" but stop being a dick about it because the bottom line is throwing money out the window because you've assigned some misguided evil to debt is reeruned.
I work for my money then I make my money work for me. Bam.
My guitar still costs more than your car and I've still got more cabbage in the couch cushions than you earn in 2 years.