Comments on: 10 Ways to Speed Up the Repayment of Your Student Loan http://studenomics.com/debt-reduction/10-ways-to-speed-up-the-repayment-of-your-student-loan/ Wed, 17 Mar 2010 03:36:52 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Financial Samurai http://studenomics.com/debt-reduction/10-ways-to-speed-up-the-repayment-of-your-student-loan/comment-page-1/#comment-13177 Financial Samurai Tue, 27 Oct 2009 13:33:48 +0000 http://studenomics.com/?p=2389#comment-13177 Hi Stud - Thnx for your thoughts. I've been thinking about this for a while. Debt is not necessarily bad, as one of my guest posters wrote about last week. In this scenario there's zero to negative carrying cost, so essentially, it's just a matter of time before the debt gets paid off in full. I like the "chip away" at it methodology given the low interest rate. If the rate was above 6%, that would be a different story. But, to have the flexibility to pay it off is a powerful call option. It's just accounting really, and that translates to how people pay for homes. It makes no difference if you put 0% down on a $1million home if you've got $1million in the bank, for example. Problem is, so many didn't don't have that level of DP, and hence our implosion. Hi Stud – Thnx for your thoughts. I’ve been thinking about this for a while. Debt is not necessarily bad, as one of my guest posters wrote about last week. In this scenario there’s zero to negative carrying cost, so essentially, it’s just a matter of time before the debt gets paid off in full.

I like the “chip away” at it methodology given the low interest rate. If the rate was above 6%, that would be a different story. But, to have the flexibility to pay it off is a powerful call option. It’s just accounting really, and that translates to how people pay for homes.

It makes no difference if you put 0% down on a $1million home if you’ve got $1million in the bank, for example. Problem is, so many didn’t don’t have that level of DP, and hence our implosion.

]]> By: Studenomist http://studenomics.com/debt-reduction/10-ways-to-speed-up-the-repayment-of-your-student-loan/comment-page-1/#comment-13164 Studenomist Tue, 27 Oct 2009 10:50:25 +0000 http://studenomics.com/?p=2389#comment-13164 @FS I don't exactly have the "perfect" answer for your question. For me personally debt is a psychological issue. I do not like to be indebted to anyone. I pay back all of my debts as soon as possible. Whether I owe a friend $5 for lunch or $5,000 in student loans, I do not want to carry any debt. In your example, I wouldn't pay it off right away but I would pay it off as quickly as possible. I personally don't want to get into the habit of investing money that isn't mine. What's your take? @FS I don’t exactly have the “perfect” answer for your question. For me personally debt is a psychological issue. I do not like to be indebted to anyone. I pay back all of my debts as soon as possible. Whether I owe a friend $5 for lunch or $5,000 in student loans, I do not want to carry any debt. In your example, I wouldn’t pay it off right away but I would pay it off as quickly as possible. I personally don’t want to get into the habit of investing money that isn’t mine.

What’s your take?

]]> By: Financial Samurai http://studenomics.com/debt-reduction/10-ways-to-speed-up-the-repayment-of-your-student-loan/comment-page-1/#comment-13142 Financial Samurai Tue, 27 Oct 2009 04:35:21 +0000 http://studenomics.com/?p=2389#comment-13142 Question for you guys. What if you had $30K in student debt at 2.6%, but had much more than that saved in the bank earning anywhere from 2%-4.2%. What would you guys do? Chip away at it every year to accelerate payment? Or, just pay it off at one go? Question for you guys. What if you had $30K in student debt at 2.6%, but had much more than that saved in the bank earning anywhere from 2%-4.2%. What would you guys do? Chip away at it every year to accelerate payment? Or, just pay it off at one go?

]]> By: 215th Edition of the Carnival of Debt Reduction | My Journey to Millions http://studenomics.com/debt-reduction/10-ways-to-speed-up-the-repayment-of-your-student-loan/comment-page-1/#comment-13074 215th Edition of the Carnival of Debt Reduction | My Journey to Millions Mon, 26 Oct 2009 11:35:09 +0000 http://studenomics.com/?p=2389#comment-13074 [...] submitted a post called 10 Ways to Speed Up the Repayment of Your Student Loan.  A guest post highlighting very basic ideas with no real depth on how to gain a few extra [...] [...] submitted a post called 10 Ways to Speed Up the Repayment of Your Student Loan.  A guest post highlighting very basic ideas with no real depth on how to gain a few extra [...]

]]>