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Can you explain that a bit more? How is it better off to pay your debt if it is 'free debt'? Wouldn't it be better to keep/invest the money elsewhere and pay t
by SubuSS 13y ago
Can you explain that a bit more?
How is it better off to pay your debt if it is 'free debt'? Wouldn't it be better to keep/invest the money elsewhere and pay the bare minimum?
This assumes elsewhere provides returns that beat inflation. I hear a lot about >3% return opportunities in index funds etc.
- bane 13y agoCorrect, it's better to invest the money elsewhere if you are servicing "free debt" and you can gain more money than you lose to the debt. Don't just compare raw percentages, but compare the actual dollar value difference.