Comments on: Pay Off My Debt or Don’t and Save the Difference? http://howiwillberich.com/2007/11/pay-off-my-debt-or-dont-and-save-the-difference/ Thu, 11 Mar 2010 00:50:38 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Credit http://howiwillberich.com/2007/11/pay-off-my-debt-or-dont-and-save-the-difference/comment-page-1/#comment-15278 Credit Fri, 20 Mar 2009 03:02:44 +0000 http://howiwillberich.com/2007/11/pay-off-my-debt-or-dont-and-save-the-difference/#comment-15278 Haha ^^ nice, is there a section to follow the RSS feed Haha ^^ nice, is there a section to follow the RSS feed

]]> By: Matt Wolfe http://howiwillberich.com/2007/11/pay-off-my-debt-or-dont-and-save-the-difference/comment-page-1/#comment-738 Matt Wolfe Wed, 28 Nov 2007 16:10:24 +0000 http://howiwillberich.com/2007/11/pay-off-my-debt-or-dont-and-save-the-difference/#comment-738 Thanks a lot Hank. That looks like a great resource. I bookmarked it. I will be sure to use that in some upcoming articles. I really appreciate that. Thanks a lot Hank. That looks like a great resource. I bookmarked it. I will be sure to use that in some upcoming articles. I really appreciate that.

]]> By: hank http://howiwillberich.com/2007/11/pay-off-my-debt-or-dont-and-save-the-difference/comment-page-1/#comment-726 hank Wed, 28 Nov 2007 01:38:46 +0000 http://howiwillberich.com/2007/11/pay-off-my-debt-or-dont-and-save-the-difference/#comment-726 Another thing I like to use is the Fidelity growth calculator - I use it a lot on my site - if the link doesn't show up click my name on this link - it'll take you there too - super helpful in figuring out these issues - I think everyone thinks about that question... http://personal.fidelity.com/toolbox/growth/growth.shtml Another thing I like to use is the Fidelity growth calculator – I use it a lot on my site – if the link doesn’t show up click my name on this link – it’ll take you there too – super helpful in figuring out these issues – I think everyone thinks about that question…

http://personal.fidelity.com/toolbox/growth/growth.shtml

]]> By: Carnivals Carnivals with a Festival Thrown in For Fun | I've Paid For This Twice Already... http://howiwillberich.com/2007/11/pay-off-my-debt-or-dont-and-save-the-difference/comment-page-1/#comment-603 Carnivals Carnivals with a Festival Thrown in For Fun | I've Paid For This Twice Already... Wed, 14 Nov 2007 16:55:07 +0000 http://howiwillberich.com/2007/11/pay-off-my-debt-or-dont-and-save-the-difference/#comment-603 [...] I Will Be Rich: Pay Off My Debt or Don’t and Save the Difference? Honestly, I don’t always know what makes the most financial sense. I do however know that [...] [...] I Will Be Rich: Pay Off My Debt or Don’t and Save the Difference? Honestly, I don’t always know what makes the most financial sense. I do however know that [...]

]]> By: Anne http://howiwillberich.com/2007/11/pay-off-my-debt-or-dont-and-save-the-difference/comment-page-1/#comment-585 Anne Tue, 13 Nov 2007 15:21:34 +0000 http://howiwillberich.com/2007/11/pay-off-my-debt-or-dont-and-save-the-difference/#comment-585 One thing you are leaving out of your analysis is the fact that if you sock the $10,000 away and don't touch it, you are still going to have to make monthly payments on your debt. So you need to calculate what happens if you pay off your debt with the $10,000 PLUS invest the amount you would otherwise be putting into your debt repayment. Otherwise, it's not an apples-to-apples comparison. You also need to factor in tax consequences. In the first example, paying off the credit card is even more attractive because the interest on the savings account is taxable. Student loan interest may or may not be tax-deductible, depending on the loan and your income. One thing you are leaving out of your analysis is the fact that if you sock the $10,000 away and don’t touch it, you are still going to have to make monthly payments on your debt. So you need to calculate what happens if you pay off your debt with the $10,000 PLUS invest the amount you would otherwise be putting into your debt repayment. Otherwise, it’s not an apples-to-apples comparison.

You also need to factor in tax consequences. In the first example, paying off the credit card is even more attractive because the interest on the savings account is taxable. Student loan interest may or may not be tax-deductible, depending on the loan and your income.

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