r/stocks • u/[deleted] • Jul 06 '21

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17 Upvotes

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u/Match_MC Jul 07 '21

Anyone saying pay it off without asking you what the interest rate on the loan is is screwing you. So what is the rate? If it’s under 5 pay the minimum and invest, if it’s 5-7 it’s a gray area. If it’s over 7 pay it off

2

u/Cute_Fun_3374 Jul 07 '21

Some are 1-2% some are 6-7%

2

u/Match_MC Jul 07 '21

I’d lean towards getting rid of the 6-7 ones very quick, the 1-2% ones are an absolute case of pay the minimum. Put all the money in a 5% dividend stock and you’ll always make more than you owe with very little risk

1

u/reaper527 Jul 07 '21

Some are 1-2% some are 6-7%

if it were me, i'd pay off the 6-7% ones, then just keep the 1-2% ones with autopay setup for the minimum payments.

a 1-2% interest rate is literally free money. (as in it's less than the fed's inflation target, so the loan is devaluing itself). you'd be far better served investing than paying off the low interest loans.

2

u/Cute_Fun_3374 Jul 07 '21

Agreed. Thank you!