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RazorsEdge
Coal
Joined: Mar 09, 2005
Posts: 14
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 Posted: Sat Apr 02, 2005 7:06 pm Post subject: Debt repayment: low and careful? |
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| Do you think that at this point in our history that if anyone has car payments or credit card payments they should not pay them off too quickly? Ie: I have a CC that won't be paid off for 36 months. But in 36 months it sounds like we could be in deep doo doo. Should I have a long term goal of 72 months? In this case, if we do run out of oil then the credit card companies won't be able to get me - they won't be able to drive to me. |
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lowem
Light Sweet Crude
Joined: Jul 19, 2004
Posts: 1268
Location: Singapore
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| Posted: Sat Apr 02, 2005 8:45 pm Post subject: |
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Unless you can put that money into some investment that pays more than the interest rate. That's a little difficult to do.
OR, if the true inflation rate exceeds the interest rate. Then you can continue to pay slowly with cheaper dollars. It's possible, but I wouldn't bet on it happening too soon.
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ohanian
Light Sweet Crude
Joined: Oct 17, 2004
Posts: 1143
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| Posted: Sat Apr 02, 2005 9:58 pm Post subject: |
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| lowem wrote: | | Unless you can put that money into some investment that pays more than the interest rate. That's a little difficult to do. |
What are you crapping on about?
Let me give you an example.
Your credit card interest is 10%
Your bank account interest is 3%
Your credit card debt is $500 dollars.
You have $100 in cash.
Now what do you do?
A) Put $100 dollars into your bank account.
B) Use all of $100 dollars to pay your credit card debt. ($500 debt becomes $400 debt)
I say, choose option (B). What do you say? |
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Tonttoro
Coal
Joined: Mar 16, 2005
Posts: 4
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| Posted: Mon Apr 04, 2005 11:26 am Post subject: |
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| Buy gold and silver with the loaned money? I wouldn't bet all my assets to this game though. |
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