Credit Cards, financial things, etc.

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Originally Posted by Destin

Not to derail the thread, but national controlled healthcare could solve a number of issues related to medicine production. Just a possibility.

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Yeah, because it would stop development due to lack of profit potential.

stopitnow

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Originally Posted by burgundy

you should obviously pay off whichever balance has a higher interest rate first. period.

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Actually talked with my dad and that's not really true. Because the student loan is Tax deductable and the car loan not so much.

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Originally Posted by Razor Ramon

What's compound interest? I am intrigued.

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Some claim that Einstein said compounding interest is the most powerful force in the universe. Or you could just read what Burg posted. I agree with both.

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Originally Posted by Thief Silver

Burg did get me thinking though, I should probably put a lot of my extra income into paying off my car as fast as possible, instead of focusing on my student loan. The $225 a month from the student loan is going to take a lot longer to pay off, so if I could pay off most of my car while I still live at home (Because I'll save what $600+ a month in food and living expenses) I can have a lot less to worry about when I move out.

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This is wise. Get that car note off your books immediately. Debt should only be used as some form of carry trade, investment related acquisitions, emergencies, or to build and establish credit so that you have access to more lines, more capital, at favorable rates. There are probably a few more reasons but I will ignore them for now.

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Originally Posted by Thief Silver

Actually talked with my dad and that's not really true. Because the student loan is Tax deductable and the car loan not so much.

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If what you're saving by having it be tax deductible exceeds the interest you'll be accumulating, sure, but that doesn't seem as likely to me. Granted I don't know he loan amount or anything. But don't pass it off as being better simply because it's deductible.

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Originally Posted by Thief Silver

Actually talked with my dad and that's not really true. Because the student loan is Tax deductable and the car loan not so much.

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that's sort of a good point i forgot about. but it's only the interest that's deductable, not the full amount. so if you're spending a lot of money paying down principal you're not going to reap the benefits of a higher deduction. although the deduction is nice because it's an above the line deduction which means you can claim it on top of (not instead of) your standard deduction, it phases out the more you make, and if you make more that $65K you're not eligible.

i can't imagine this break would be worth more than a half point of interest.

also, rates being the same, i'd rather owe on my education than on my car. if i am struggling with student debt a lender is much more likely to work with me because they have little choice. miss a couple of car payments though and they will take your car and fuck your credit too.

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Originally Posted by icarusfall

Have fun worrying about your credit score - there's no point in arguing with you guys that have bought in to this. Like I said, two different lives.

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The thing is, I'm not worrying about it.

I don't work my job because I'm worried about money, I work it because I'd like the things money would buy. Same with the credit score, I'm not going to build it because I'm worried about it, but because I want what a good one would offer.

I can't believe how irrationally paranoid you are about this.

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Originally Posted by Gooch

investment related acquisitions

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this by the way includes debt relating to REAL ESTATE (aka a home) and EDUCATION because these are investments we expect to grow in value in addition to whatever immediate purposes they serve. real estate should literally grow in value (at least over time, if not every year) and education should translate into dramatically increased earning potential.

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Originally Posted by burgundy

that's sort of a good point i forgot about. but it's only the interest that's deductable, not the full amount. so if you're spending a lot of money paying down principal you're not going to reap the benefits of a higher deduction. although the deduction is nice because it's an above the line deduction which means you can claim it on top of (not instead of) your standard deduction, it phases out the more you make, and if you make more that $65K you're not eligible.

i can't imagine this break would be worth more than a half point of interest.

also, rates being the same, i'd rather owe on my education than on my car. if i am struggling with student debt a lender is much more likely to work with me because they have little choice. miss a couple of car payments though and they will take your car and fuck your credit too.

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Oh I've decided for sure that I want to pay off my car fast. I was just making the point that there are benefits to not paying the student loan first and I think I'm better off doing the car as fast as possible.

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Originally Posted by Rich

If by worst kind of customer, you mean best kind of customer?

The credit card company just made ~$80 off of Apple for a single purchase.

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True. However, I just meant I don't get caught up in the interest game they love to catch people in.