For the past few months I�ve 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. He�s 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. I�ve 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 it�s spurred him into a battle to redirect our money. I�m not saying he�s 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 $$ doesn�t stay in our checking acct and get spent elsewhere. So the ball is in his court to actually DO something about it.
Met with Resistance
October 26th, 2006 at 05:45 pm
October 26th, 2006 at 05:57 pm 1161881850
October 27th, 2006 at 01:41 am 1161909696
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.