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re: Should I pay off my debt?

Posted on 10/14/15 at 9:32 am to
Posted by Volvagia
Fort Worth
Member since Mar 2006
51915 posts
Posted on 10/14/15 at 9:32 am to
Its not a horrible idea, but keep in mind:

Every dollar you put towards that note is giving you a return of 2.99%

You can get a much higher return in the market.
Posted by Mr.Perfect
Louisiana
Member since Mar 2013
17438 posts
Posted on 10/14/15 at 9:34 am to
quote:

Every dollar you put towards that note is giving you a return of 2.99%

You can get a much higher return in the market.




Those are post tax dollars
Posted by iknowmorethanyou
Paydirt
Member since Jul 2007
6550 posts
Posted on 10/14/15 at 9:40 am to
I absolutely hate this line of reasoning regarding short-term debt. In the short-term, he could get his arse whipped in the market. Pay the car off.
This post was edited on 10/14/15 at 9:41 am
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 10/14/15 at 1:19 pm to
quote:

Its not a horrible idea, but keep in mind:

Every dollar you put towards that note is giving you a return of 2.99%

You can get a much higher return in the market.


Let me amplify on this a bit. A 3% guaranteed return isn't bad, whereas there is no guarantee that investing it will do better or worse. That said, 3% isn't a great return either and you may be better off having the money handy or contributing more to tax-sheltered retirement accounts if you can.

At 3% I think you could really go either way.
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