Comments on: Should You Really Become Debt Free? http://www.mmhabits.com/should-you-really-become-debt-free/ To Achieve... To Succeeed... Fri, 12 Mar 2010 17:35:19 -0600 http://wordpress.org/?v=2.9.2 hourly 1 By: Randall http://www.mmhabits.com/should-you-really-become-debt-free/comment-page-1/#comment-183 Randall Thu, 03 Jan 2008 17:28:33 +0000 http://www.i-endeavors.com/index.php/2007/12/23/should-you-really-become-debt-free/#comment-183 The only addition I'd throw in is to evaluate the risk involved in both directions. Putting the money into investments if those investments return more than the loan % is good. Just be careful that you don't LOSE money on the investments. Then you get double-whammied. The investment loss AND the interest payments. It might take quite a bit to make up that if the investment loss was significant. The only addition I’d throw in is to evaluate the risk involved in both directions. Putting the money into investments if those investments return more than the loan % is good. Just be careful that you don’t LOSE money on the investments. Then you get double-whammied. The investment loss AND the interest payments. It might take quite a bit to make up that if the investment loss was significant.

]]> By: Ryan http://www.mmhabits.com/should-you-really-become-debt-free/comment-page-1/#comment-162 Ryan Sat, 29 Dec 2007 03:10:29 +0000 http://www.i-endeavors.com/index.php/2007/12/23/should-you-really-become-debt-free/#comment-162 Good points worth mentioning. To clarify on the different types, federal loans can be subsidized or unsubsidized and carry relatively low interest rates. They can also be consolidated to lock in even lower rates. A subsidized federal loan basically means the government pays the interest on the loan while you school. With unsubsidized loans, you are responsible for the interst that accrues while you are in school. Then there are private loans, which you can take out after there are no more of the prefered federal loans to obtain. These are the ones that can carry the heavy interest rates. I believe it is pretty rare to borrow the max federal loans and still have a need for additional funding, but then again I did when I went through college. However my private loan was a small fraction compared to my federal loans. Good points worth mentioning. To clarify on the different types, federal loans can be subsidized or unsubsidized and carry relatively low interest rates. They can also be consolidated to lock in even lower rates.

A subsidized federal loan basically means the government pays the interest on the loan while you school. With unsubsidized loans, you are responsible for the interst that accrues while you are in school.

Then there are private loans, which you can take out after there are no more of the prefered federal loans to obtain. These are the ones that can carry the heavy interest rates.

I believe it is pretty rare to borrow the max federal loans and still have a need for additional funding, but then again I did when I went through college. However my private loan was a small fraction compared to my federal loans.

]]> By: kitty http://www.mmhabits.com/should-you-really-become-debt-free/comment-page-1/#comment-161 kitty Fri, 28 Dec 2007 23:33:33 +0000 http://www.i-endeavors.com/index.php/2007/12/23/should-you-really-become-debt-free/#comment-161 Just stumbled on your blog accidentally... Don't have any loans personally, but as I watch Suze Orman occasionally, I thought I'd mention that your student loan advice goes against what she is saying. As I understand it, there are two kinds of student loans - subsidized and private. While subsidized loans carry low fixed interest, the private loan can have high interest that can go up. Additionally, as she is saying, unlike other loans, student loans cannot be dismissed with bankrupcy or in any other way, and they have power to go after you in any way e.g. garnish your wages. So according to her, paying off private student loans shall be high priority. Just thought I'd mention it. Just stumbled on your blog accidentally… Don’t have any loans personally, but as I watch Suze Orman occasionally, I thought I’d mention that your student loan advice goes against what she is saying.

As I understand it, there are two kinds of student loans – subsidized and private. While subsidized loans carry low fixed interest, the private loan can have high interest that can go up. Additionally, as she is saying, unlike other loans, student loans cannot be dismissed with bankrupcy or in any other way, and they have power to go after you in any way e.g. garnish your wages. So according to her, paying off private student loans shall be high priority.

Just thought I’d mention it.

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