How much money can you save if you pay all your student loans at once instead small amount per month (employment, credit card)
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In some situations, no matter the loan, it might be best to invest (spread) that money out to other places than to throw everything at one particular loan. You can still pay a loan off faster than it's payback date, but don't lose years of your life worrying about it and living like a hermit because of it.
I disagree. It is ALWAYS better to pay the loan off. Then if you want to invest - and remember that brings with it some risk (how much varies with the investment) of losing your principal - you can invest the money that would otherwise have gone toward loan payments.
Going debt-free - or at least as debt-free as possible, given the cost of buying a home - protects you from any drops in income or interruptions in employment. Until one has at least a year's worth of expenses in a savings account, investing is an unnecessary risk. ESPECIALLY in this economic climate, and ESPECIALLY ESPECIALLY if you are at entry-level in whatever your field is.
However, in the general course of things, if you have other debt besides student-loan debt, it is better to pay that off first, starting with the highest interest rate loans. If you lose your job you can get an abeyance on your student loans - but remember to keep filing that paperwork over and over again until your situation improves. Due to my long illness, my son was filing that paperwork - and he didn't know that he had to keep filing it, so my student loans fell into collections when they shouldn't have, thus destroying my credit rating.
I disagree. It is ALWAYS better to pay the loan off. Then if you want to invest - and remember that brings with it some risk (how much varies with the investment) of losing your principal - you can invest the money that would otherwise have gone toward loan payments.
Going debt-free - or at least as debt-free as possible, given the cost of buying a home - protects you from any drops in income or interruptions in employment. Until one has at least a year's worth of expenses in a savings account, investing is an unnecessary risk. ESPECIALLY in this economic climate, and ESPECIALLY ESPECIALLY if you are at entry-level in whatever your field is.
However, in the general course of things, if you have other debt besides student-loan debt, it is better to pay that off first, starting with the highest interest rate loans. If you lose your job you can get an abeyance on your student loans - but remember to keep filing that paperwork over and over again until your situation improves. Due to my long illness, my son was filing that paperwork - and he didn't know that he had to keep filing it, so my student loans fell into collections when they shouldn't have, thus destroying my credit rating.
You have absolutely no idea what you're talking about. Why would you pay off a loan with a meager 4-6% interest rate when you could instead be earning anywhere from 10-20% in the market? Moreover, why pay off a loan that provides borrowers a myriad of incentives to pro-long re-payment without penalty? If you have cash, in this low-interest rate environment, you should be looking for returns not paying down debt-levels beyond requirement.
You have absolutely no idea what you're talking about. Why would you pay off a loan with a meager 4-6% interest rate when you could instead be earning anywhere from 10-20% in the market? Moreover, why pay off a loan that provides borrowers a myriad of incentives to pro-long re-payment without penalty? If you have cash, in this low-interest rate environment, you should be looking for returns not paying down debt-levels beyond requirement.
Exactly, not to mention timing. Some investments have windows and you'll want to invest when you can instead of making large payments towards a low APR loan.
take out a loan on an unsecured credit card, default, and then declare bankruptcy while working off the books. once your record is clear, come back on the books. poof! free college degree. white collar smart alecks game the system by taking bailouts for their companies from tax payers. YOU should too.
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