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Inmate Central Inmate Central, where civil and family-friendly discourse about off-audio topics (other than religion and politics) is welcome. |
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In Reply to: Always a good place to start.... posted by Ivan303 on June 25, 2022 at 08:11:12:
it's just that, for us (and in my opinon), a good plan to pay it off as quickly as possible -- unless the interest rate on the debt is way low (e.g., lower than the rate of inflation). Right now, that's true for lots of folks.On the one hand, it's really nice to pay off debt (or even to pay debt service) with inflated money. :)
On the other hand, it's always instructive to look at the amount of money that is spent (wasted, from the borrower's perspective) on interest, especially in the early years of a loan. Paying just a little bit extra every month towards the principal saves years and large sums of real money in terms of the lifetime cost of the loan. Plus, there's that "future value of a present sum" thing, you know? Of course, if I stop and think about the rolled-up "cost" in 20 or 30 years of buying myself a $4 drink today -- well, no Starbucks for me! ;)
All y'all know that, I know -- but it seems lost on lots of folks.
EDIT:
PS I am OK with that "no Starbucks" thing! I brown-bagged lunch and drove Fords durin' my RFT employment days... and retired at 56. Seemed like a good trade-off to me.
all the best,
mrh
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Follow Ups
- nothin' wrong with borrowin' money to purchase property... - mhardy6647 06/25/2209:03:52 06/25/22 (1)
- All of our home loans were 15 year.... - Ivan303 09:38:04 06/25/22 (0)
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