Getting Good Debt Gone | Series 9.8

Enjoy More 30s: Family Finance

Oct 3 2022 • 4 mins

If you had the option to either save 4% or make 7%, which would you choose?

  • Certain debts are regarded as good and so getting rid of something good would have to then generally be regarded as a bad thing to do. (01:07)
  • If you had the option to save 4% or make 7%, the best answer for those who do not want to be a millionaire would be to save 4%. Saving 4% is obviously much less than making 7. (01:24)
  • This can apply to things such as lower interest student loans, or even just switching to a 15 year mortgage instead of a 30 year, forcing you to commit to paying back more money more quickly into a perhaps very low or even potentially tax deductible, good debt like a mortgage. (01:57)

Quote for the episode: "So paying off a 4% mortgage for example, early with extra payments, instead of taking that same exact money and putting it into a well diversified investment that may make 7% for example long term is a great strategy to not be a millionaire." (01:39)

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