LSUtigerME LSU Fan Walker, LA Member since Oct 2012 416 posts Online
re: Debt Payoff Strategy Advice (Posted on 7/17/13 at 12:17 pm to LSUengineer'12)
It depends on what your goals are. If its to reduce the total interest you pay, put all the extra towards the higher interest. If it's to reduce liabilities, pay it towards car, then stack that payment to trailer.
I personally would prob put a little extra toward trailer, but save more. Maybe contribute more to a retirement account, or some other investments. Both rates are pretty low, so assuming you have a secure job, no need to pay since you could make more in the market. Possibly also saving for a house down payment if that's in your future. Rates are quickly rising.
foshizzle LSU Fan Washington DC metro Member since Mar 2008 28188 posts
re: Debt Payoff Strategy Advice (Posted on 7/19/13 at 8:22 pm to LSUengineer'12)
quote: So are you saying to simply pay the minimum?
I'll put it to you this way. I refinanced my 30-year mortgage at 3.25% recently. That is about 2.5% once you take the tax deduction into account. When someone is willing to lend me money at the rate of inflation my only question is "how long will you let me have it?" because the real cost is zero. And on top of that you get extra liquidity.
I am very much looking forward to paying this mortgage for the full 30 years. I wish I could have gotten it for 100 years instead.