Comments on: Paid Off a Chunk of Debt This Week http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sun, 08 Nov 2009 07:50:42 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Flexo http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119320 Flexo Tue, 09 Oct 2007 06:17:56 +0000 http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119320 Thanks for the words of encouragement, everyone! Thanks for the words of encouragement, everyone!

]]> By: thomas http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119299 thomas Mon, 08 Oct 2007 04:57:25 +0000 http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119299 luckily my loans are below 3%. I'm really in no hurry to pay them off. My wife's on the other hand is a totally different story. She's stuck w/ a variable rate and it's super high right now. I'm actually trying to dump the amount onto a fixed rate credit card b/c of the difference in payment. The tax benefit of her loans isn't worth it. luckily my loans are below 3%. I’m really in no hurry to pay them off. My wife’s on the other hand is a totally different story. She’s stuck w/ a variable rate and it’s super high right now. I’m actually trying to dump the amount onto a fixed rate credit card b/c of the difference in payment. The tax benefit of her loans isn’t worth it.

]]> By: Mrs. Micah http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119273 Mrs. Micah Sat, 06 Oct 2007 01:19:45 +0000 http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119273 Congrats! That must have taken a big bite out of your debt. :-) It also sounds wise, considering the situation. Congrats! That must have taken a big bite out of your debt. :-) It also sounds wise, considering the situation.

]]> By: Colin http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119272 Colin Sat, 06 Oct 2007 01:17:17 +0000 http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119272 That is awesome! I did the same thing this week thanks to the dropping interest rates. I managed to take out around $13,000 of my student loan. Not too much longer.... That is awesome! I did the same thing this week thanks to the dropping interest rates. I managed to take out around $13,000 of my student loan. Not too much longer….

]]> By: Patrick http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119270 Patrick Fri, 05 Oct 2007 23:22:27 +0000 http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119270 Awesome! Congrats on the big payment. I think a lot more people will start doing something similar in the near future. Awesome! Congrats on the big payment. I think a lot more people will start doing something similar in the near future.

]]> By: Clever Dude http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119268 Clever Dude Fri, 05 Oct 2007 20:43:42 +0000 http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119268 Congrats on getting rid of that debt. The student loans were next on my list before buying my wife a Mini. But we'll have that paid off before January and then get back to the student loan payoff. Congrats on getting rid of that debt. The student loans were next on my list before buying my wife a Mini. But we’ll have that paid off before January and then get back to the student loan payoff.

]]> By: Flexo http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119260 Flexo Fri, 05 Oct 2007 15:45:57 +0000 http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119260 DividendGuy: Heh. No, I already bought my new TV (but not with debt). DividendGuy: Heh. No, I already bought my new TV (but not with debt).

]]> By: The Dividend Guy http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119259 The Dividend Guy Fri, 05 Oct 2007 15:43:55 +0000 http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119259 That is always a pretty good feeling to do that - it is more psychological than anything. Just don't celebrate by buying a new TV with debt :-) That is always a pretty good feeling to do that – it is more psychological than anything. Just don’t celebrate by buying a new TV with debt :-)

]]> By: paidtwice http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119257 paidtwice Fri, 05 Oct 2007 14:17:25 +0000 http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119257 Congrats on paying off a chunk of debt! That sounds awesome :) Congrats on paying off a chunk of debt! That sounds awesome :)

]]> By: askprofit http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119254 askprofit Fri, 05 Oct 2007 13:25:21 +0000 http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119254 Better to pay off debt..it will be worth it in the long run. Good for you! Better to pay off debt..it will be worth it in the long run. Good for you!

]]> By: FrugalTrader http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119253 FrugalTrader Fri, 05 Oct 2007 12:50:54 +0000 http://www.consumerismcommentary.com/2007/10/05/paid-off-a-chunk-of-debt-this-week/#comment-119253 Hey Flexo, yea it doesn't make sense to keep a whole bunch of cash in your savings account when you have non-ded debt on hand. Considering that the interest earned on your savings is taxed as income, and paying down your loan is like an after tax return. For example, if your savings account paid you 5.5% @ 40% marginal tax rate, your after tax return is: 3.3%. If you pay down your student loan, your after tax return is 4.25%. FT Hey Flexo, yea it doesn’t make sense to keep a whole bunch of cash in your savings account when you have non-ded debt on hand. Considering that the interest earned on your savings is taxed as income, and paying down your loan is like an after tax return.

For example, if your savings account paid you 5.5% @ 40% marginal tax rate, your after tax return is: 3.3%. If you pay down your student loan, your after tax return is 4.25%.

FT

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