I need your perspective on something

avatar

So I am in debt. You can call it "college debt" but its not as scary.
I am around 3k usd in Debt and I will be done with it by 2025 if I don't actively pay more towards which I haven't done yet.
But I am thinking about doing it just to get rid of it faster.

The main which have kept me from paying it down faster is my interest is only 1% and I am paying around $100 usd each month and I know I can get a better return in the stock market.

But I am wondering if it would be a good idea to just pay it down faster to get rid of it, so I could invest the double amount in the future.
(I wish I could pay it down with crypto, that would have been so easy)

Any ideas or different perspectives anyone?



0
0
0.000
45 comments
avatar

I for one don't like holding debt on me for too long if I can pay it off, the mental stress is a big deal for me

0
0
0.000
avatar

It depends on the loan and interest rate right?
Like paying 100 usd pr month is 5% of my month salarly, so its kinda nothing and no stress for me x)

0
0
0.000
avatar

When is the soonest you could pay it off if you increased your payment.

0
0
0.000
avatar

Properly a bit before 2024 if I used birthday money and such :D

0
0
0.000
avatar

It probably makes more sense to gather capital for the bottom of the market.

0
0
0.000
avatar

I think so too, since the interest is only 1% so it doesn't really bother me

0
0
0.000
avatar

You're doing Right thing just get rid of it and you'll not have burden or like a pressure kind of feeling being in debt i always have and it's like being handcuffed.

That's my POV i believe you will take a Good decision!

0
0
0.000
avatar

But I dont feel it as a burden or pressure. Since I get a better return in the stock market xD

0
0
0.000
avatar

Hehe, if those returns are Good than would be worth to wait and return loan from the profits made in stock.

I'm not into stocks really NGL.

0
0
0.000
avatar

Well, stocks return on average 4% and my loan interest is only 1%. So stocks just seems better xD

0
0
0.000
avatar

Go for it, listen to your heart xD

0
0
0.000
avatar

Heart doesn't tell me anything and my brain have adhd, thats why I need people perspectives haha xD

0
0
0.000
avatar

Hehe, Hope peeps will give you best advice's.

0
0
0.000
avatar

Every advice is good and I appreciate it :D

0
0
0.000
avatar

When I am in debt, my mind is constantly preoccupied with that debt and whenever I want to buy something, it constantly sends me signals "you owe me, don't forget". I have always prioritised my debts to keep my mind at ease.

If you have this kind of situation, pay and get rid of debt for a relaxed mind! :)

0
0
0.000
avatar

Fair fair.
I dont have it like that.
Its only 3k and with an interest rate of 1%

0
0
0.000
avatar

I personally would always priorize to pay the debts, but know many people think different.

0
0
0.000
avatar

The only reason I think differently is because its only 1% interest. I get on average 4% return in the Stock market and much more return in Crypto xD

0
0
0.000
avatar

I would try to get rid of it as fast as possible. I did that many years ago and have been dept free since then. I don't like paying extra money for money I borrowed. I don't want to make the bank rich. Save yourself the one percent you have to pay and use it for something else.

0
0
0.000
avatar

1% isn't really going to make the banks rich, I just want to have the extra 100 bucks to invest :P

0
0
0.000
avatar

The bank gets 1% from thousands of people. I think they make enough money just out of nowhere. The funny thing is that they can give out loans 10 times more as they have money in their safes.
There are a few videos about this on YT.

0
0
0.000
avatar

Well, there is a lot of videoes about it if you live in the usa :p
Not a lot from Europe.

And I am fully awere of it :p

0
0
0.000
avatar
(Edited)

Yeah debt is a burden.I have a debt also and it will take years to clear it. My stand to it is minimisng the expenses for that I could return it asap.

0
0
0.000
avatar

Debt is a nessercery when buying a house though

0
0
0.000
avatar

I only invest money I can afford to loose, so I can't relate.

I would say just burn the creditor, you don't need to pay them back and after 10 years where I live, if the debt isn't collected its considered to be nullified.

#anarchy

0
0
0.000
avatar

If I dont pay it back where I live, it will end up being collected through my taxes, so higher tax rate for me.

0
0
0.000
avatar

Your financial system seems more secure than Canada's.

0
0
0.000
avatar

Well, yes xD
Students also get paid a bit to go to school xD

But our taxes is also high x)

0
0
0.000
avatar

Security seems to be synonymous with taxation.

My least favorite part of the system, I pay tax I could spend on security systems myself, to pay for cops that are a joke here in Canada.

Both sides typically see the Canadian justice system as a failed form of justice.

Will a prosecution actually be profitable for a litigation or is the justice system failing those tax payers who pay those high rates?

0
0
0.000
avatar

Well not sure about Canada, but everything works quite well here. Ofcouse the politiciants makes stupid desicion, but overall its pretty good here.

One thing I dont understand here is the need for pensions. I can invest in an index with a better return than the pensions since they are active managed x)
I dont understand that.

0
0
0.000
avatar

If you can pay it off sooner, it would be in your best interest to do it now. The future is unknown and God forbid but if things don’t work out your way, you’re going to be fucked and you’ll wish you payed it off when you could.

Hey, @nathen007, do you want to say something about this?

0
0
0.000
avatar

Sorry, but I make my own luck and "God" can suck a dixk

0
0
0.000
avatar

Respect🫡
Lol you’re my kind of person! Seems like you’ve decided what to do already then.

0
0
0.000
avatar

Hey fellas! I say pay it off sooner if they will return some of the interest upon completion or if its on a variable rate, if not just roll with it if you have regular income.

0
0
0.000
avatar

Return of interest? Never heard about this xD
No variant rate, stable 1%

0
0
0.000
avatar

Sometimes, loans have a settlement figure so if you settle early you'd end up paying less but at 1% fixed, just let it ride to term. Keep posting here and you'd make that in any case! Don't ever let debt stress you though. Always pay yourself first, I've no doubt the $100 is much more of a big deal to you as it is them!

0
0
0.000
avatar

I am half way through the loan without even thinking much about it the past few years, so its not really a problem. Even when I was on wellfare, I could pay it off xD

Its not stressing me out, but I am thinking about investing heavily into stocks and such, so I in the future could borrow money for a house, but I would properly need to have paid off the student loan at 1% before I can do that.
Thats why I am thinking about it now, just to get rid off it even though stocks pay better x) I am still 2 years away from buying a house though.

Also, crypto isn't seen or being "useful" in my country yet, I am scared to take some out since I don't know how much they will tax me xD

0
0
0.000
avatar

Any ideas or different perspectives anyone?

If I would have any debt, then I would do the paying as much as I can to pay it off (get out of the debt) as soon as possible. If you have $3000 USD debt, then even a 1% interest is $30 USD, which is probably not much for you, but still more than nothing. I think that it is better to pay the whole debt as soon as possible.

0
0
0.000
avatar

Its $30 usd pr year xD So really not a big deal

0
0
0.000
avatar

For you. If you would have a pension-like income of approximately $3000 USD per year ($250 USD per month), like me, then probably you would think otherwise. Besides, $30 USD is still money for everyone, and if you are able, then it is better to invest than pay.

0
0
0.000
avatar

But I dont have that. So why would I think otherwise?

0
0
0.000
avatar

Everyone have different financial situations. If I would earn thousands of dollars every month, then probably I would also say for the $30 USD that it is not a big deal.

0
0
0.000
avatar

I earn 2k usd a month xD

0
0
0.000