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/biz/ - Business & Finance

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49379987 No.49379987 [Reply] [Original]

Are there any advantages to pay off all of your debt? Or is it better to just make minimum payments?

>> No.49380018

it's all about the interest. if it's 0%, then just pay it off as slowly as possible. that's what i'm doing with $6,000 in CC debt I have. it's 0% until may 2023

>> No.49380030

If you're going to be stuck making minimum payments, if it's unsecured debt just stop paying it

>> No.49380078

>>49380018
This is essentially the advantage of having a mortgage on a house. Especially if you bought or refinanced last year at record low interest rate.

>> No.49380089
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49380089

>>49379987
bigger payments will pay it off faster and you'll pay less interest but you might starve during the recession

>> No.49380110
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49380110

>>49380089
See that's just it. I could pay it off faster sure but I'd have jack shit left in cash.

>> No.49380216

You pay off debts to reduce risk, increase flexibility.

It all really depends on what opportunities you have, how large the loan is etc.

If you're getting raises, technically inflation is eating away at your loan. But there's not much to do with your money while the market is shitting itself, everyone is in that boat.

Personally I put everything I had to pay off my mortgage. Now I can easily borrow against my house with a floating rate.