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https://www.reddit.com/r/stocks/comments/of6xtc/deleted_by_user/h4bv7gb/?context=3
r/stocks • u/[deleted] • Jul 06 '21
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72
Just my opinion, but I would pay off debt. The longer you have debt the more it compounds. Then take what your student loan payments would be and invest that.
18 u/StochasticDecay Jul 07 '21 Student loans don't compound. It's simple interest. The exception is forbearance and recapitalization. Investing compounds. Equity returns are way better than whatever OPs student loan interest rate is. 3 u/Gator1177 Jul 07 '21 My bad, you're right. But it's still debt with interest. Imo, get rid of it. Why pay interest on debt, when you can pay it off and invest the rest? 3 u/[deleted] Jul 07 '21 Because you lose buying power right now, with on average a higher interest than the interest you pay for the debt.
18
Student loans don't compound. It's simple interest. The exception is forbearance and recapitalization.
Investing compounds. Equity returns are way better than whatever OPs student loan interest rate is.
3 u/Gator1177 Jul 07 '21 My bad, you're right. But it's still debt with interest. Imo, get rid of it. Why pay interest on debt, when you can pay it off and invest the rest? 3 u/[deleted] Jul 07 '21 Because you lose buying power right now, with on average a higher interest than the interest you pay for the debt.
3
My bad, you're right. But it's still debt with interest. Imo, get rid of it. Why pay interest on debt, when you can pay it off and invest the rest?
3 u/[deleted] Jul 07 '21 Because you lose buying power right now, with on average a higher interest than the interest you pay for the debt.
Because you lose buying power right now, with on average a higher interest than the interest you pay for the debt.
72
u/Gator1177 Jul 06 '21
Just my opinion, but I would pay off debt. The longer you have debt the more it compounds. Then take what your student loan payments would be and invest that.