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Originally Posted by captain_krunk
Good info.
I was ecstatic to pay off my car loan and I'm eyeing my wife's school loans in a similar way, but those have such a low rate that it wouldn't make much sense to pay off compared to things like my mortgage.
Perhaps I want to pay it off because I know its something that's within my control, whereas with investing I'm a blind man learning to see.
The 50/50 idea is good. I guess I'm the type of person who just wants to get one thing done well and then move on, but this discussion is enlightening and I've still got plenty of studying to do.
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I understand the idea of paying off one debt completely because of the feelings it provides...however, it doesn't make fiscal sense.
So, how about if, instead, you keep sending money only to your highest after-tax debt, and just focus on your total debt outstanding, and seeing it drop? That way, you can still get some warm fuzzies at seeing your debt drop by 10%/20%/30%, as well as maximizing your net worth.
Or, how about focusing on the amount in interest that you're saving by paying off the high rate debt first, rather than looking at the balances/debts left?
--Peter
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Dryer sheets Schmyer sheets
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