PersephNoob t1_jegkpt5 wrote on March 31, 2023 at 9:24 PM

Pay off your car, it’s a no risk way to make 4.14% on your “investment” if you know what I mean and any competent person would take that. Same with student loans since their is no chance of forgiveness.

DifficultyNext7666 t1_jegyolz wrote on March 31, 2023 at 11:06 PM

Except you can literally put that same money in a savings account now and make more than that

cakeandale t1_jeh2k23 wrote on March 31, 2023 at 11:36 PM

That’s generally good advice, though for right now 4.14% is near the balance point for savings vs debt. Savings interest is taxed as income, and if OP is in the 22% tax bracket ($44,725-$98,375) they’d need to get 5.3% interest to breakeven post-federal-tax (likely slightly higher depending on state taxes).

PersephNoob t1_jeh13ma wrote on March 31, 2023 at 11:25 PM

Show me a savings account making 4.79%, and your not considering the simple risk of debt.

DifficultyNext7666 t1_jeh1t28 wrote on March 31, 2023 at 11:30 PM

You said car. And I can easily show you a savings account making 4.5. And pretty soon I'm sure we'll see them over 5

PersephNoob t1_jeh1x79 wrote on March 31, 2023 at 11:31 PM

Whatever man, stay broke with all your “good” debt.

scrooooooooooge OP t1_jegl24t wrote on March 31, 2023 at 9:27 PM

Yeah that's true I guess from the perspective of me already paying them off at that rate, it would be a 4+% "investment"