New answers tagged debt-reduction
1
If the interest rates are identical, it does not matter, assuming the mortgages have identical tax treatment (if you get a tax break on one but not the other, the situation changes).
And: Once the smaller loan is paid off, you must apply its payments to the other.
No matter where you put an extra 1000USD, it will always save you 38USD per year for each year ...
1
Provided the interest rates are similars, and you still want to make overpayments on mortgages, then the best option is to put all the capital (available for overpayment) in the mortgage which has the longest term left.
In most cases this is going to be the mortgage with the most principal left, as in your case it is the 30 years mortgage.
The reason for ...
0
As per everyone else: it's hard to make/earn off savings and investments the same amount you pay in interest on debts. That's literally how the financial sector makes its profits. It's a good idea to have some emergency slush but... how much are you spending each month just servicing your debts? If you can afford to start putting $4000~5000 a year into a ...
3
I'm going to try and provide a short/sweet answer compared to the other two provided.
When companies cut their dividend, it typically means they are hurting financially which is a red flag for investors. So investors may act on those fears and pull out their money causing the stock to drop a substantial amount. This isn't good for the company because it ...
0
I think at the core of this question is a misunderstanding of debt. There's debt, and then there's debt. And that's not to say there is good debt and bad debt, as some people refer to mortgages as "good debt" and credit cards as "bad debt" but just that not all debts are the same. For example, not all mortgages are good so not all mortgages can be good ...
1
Chances are everyone who reads this StackExchange knows that debt is dangerous and should be avoided.
While I do agree that debt is dangerous and should be avoided, not everyone does. Heck there are people on here that advocate taking pay day loans!
Even the most debt adverse financial commentators suggest that a mortgage is an acceptable risk. They ...
Top 50 recent answers are included
