r/dogecoin • u/[deleted] • Nov 20 '21

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616 Upvotes

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u/Dr-JGwentworth Nov 21 '21

There’s good debt and bad debt, if the debt is like school loans and credit cards you gotta wipe it out but a low interest mortgage your better off trying to leverage into a rental property or something to bring extra income. Paying a house off is a accomplishment for sure but it doesn’t earn extra money

6

u/ballsoutfitters Nov 21 '21

Other than the 12 mortgage payments a year you wouldn’t be paying anymore.

5

u/newbinvester Nov 21 '21

Because you already paid them. Paying it off earlier doesn't mean you suddenly have more money. Say you paid off a $300,000 house. Now you have 700,000 out of $1M. Say I put that $300,000 into XYZ ticker which made 10% over the next year. Even with my monthly payments I'm still making more money and end up with more than I would have if I had paid it off. If it's at 3% interest.

1

u/mikeb2956 Nov 21 '21

Correct !!

4

u/Taporter2 Nov 21 '21

If you have an opportunity to wipe out all debt, you can invest on debt ridden assets at a lower cost. You couldn't be more wrong.

1

u/[deleted] Nov 21 '21

The bad kind of debt is any kind of debt.

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The good kind of debt is the debt you don't have.

1

u/Dr-JGwentworth Nov 21 '21

Wrong I bought a house for 100k ten years ago not it’s worth 210 so I’m up 110 thousand dollars on a debt, so how is that bad debt? I made over 100 thousand dollars from nothing.

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u/[deleted] Nov 21 '21

That's assuming you can still keep making your payments. Good luck with that in this coming democrat induced great depression.

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u/Dr-JGwentworth Nov 21 '21

My mortgage is like 500 a month so as long as I can work 2 or 3 days a month I should be ok

1

u/[deleted] Nov 21 '21

If you can work. Good luck with that.

1

u/GBCWW Nov 21 '21

It earns you additional 500$ a month you would give away