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Met with Resistance

October 26th, 2006 at 09:45 am

For the past few months Iíve been paying about $1000 each month on the student loan. I really want to get it paid off by the end of next summer/early fall. Other than the mortgage, this is the only debt we have so I want it GONE.

DH has been ok with this until the past few days. Heís going on and on how we should be investing that money rather than paying off the debt. Our investments are doing well and he wants more money for that. Iíve been resisting because I want to pay off the debt first. His student loan rate is rather high (7.25% I believe) and we are doing much better than that with our investments.

We are both teaching the time value of money in our Business Math class and itís spurred him into a battle to redirect our money. Iím not saying heís wrong (I do understand about present and future values), but I really want this debt gone. So we may decide to compromise and put $500 toward the student loans and $500 into the Schwab account. I told him that if he felt that strongly about it he could have $250 from each paycheck direct deposited to Schwab. That way the $$ doesnít stay in our checking acct and get spent elsewhere. So the ball is in his court to actually DO something about it.

2 Responses to “Met with Resistance”

  1. reginaastralis Says:

    I'm assuming you're loans are consolidated, right? And yes, 7.25% is pretty high .. I believe that's the current rate going right now.

  2. princessperky Says:

    I think some of 'the best thing to do' is about feelings, and I can completly understand the feeling that getting out of debt is better..what if the stock market crashes then you not only don't have great return, you also have debt.

    but on th other hand it can sound silly to be paying down 7% when you could be earning 10%, the straight math is simple, the whole big picture is tougher.

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