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- Newsgroups: misc.consumers.house
- Path: sparky!uunet!cs.utexas.edu!milano!cobweb.mcc.com!breland
- From: breland@cobweb.mcc.com (Mark A. Breland)
- Subject: Re: when does it make sense to reduce the
- Message-ID: <1993Jan21.193309.8924@mcc.com>
- Sender: news@mcc.com
- Reply-To: breland@cobweb.mcc.com
- Organization: MCC
- References: <MACRAKIS.93Jan21124235@lakatos.osf.org>
- Date: Thu, 21 Jan 1993 19:33:09 GMT
- Lines: 31
-
- In article 93Jan21124235@lakatos.osf.org, macrakis@osf.org (Stavros Macrakis) writes:
- >
- >No. This is still not right. For a given monthly payment, you will
- >get out of debt faster if you first pay off high interest rate loans
- >(e.g. credit cards) and only then start paying off lower interest rate
- >loans (e.g. mortgage).
-
- Sigh, I *really* didn't want to get sucked into this, so I'm only going to
- say this once and ignore the followups (however lengthy, detailed, full of
- examples they may be). EVERY person's case is unique: different income;
- paid-off assets; leveraged assets; tax liability; consumer credit; and
- so on. But whatever a person's situation is, they pay one entity or
- another. With a high income, no debt, and no shelters...they pay taxes (lots).
- With a middle income, mortgage payment, and a little consumer debt...they
- pay a lower tax offset by their mortgage interest and some interest to
- their bank. With a high income and lots of consumer debt...they pay lots
- of taxes and lots of interest to their bank. The only folks who don't
- have to worry about paying anything haven't earned anything to pay with
- anyhow.
-
- So I stand by my original assertion, run your own numbers and make your own
- choice as to what approach is of the greatest benefit to your unique case.
- What's right for Stavros (or Mark for that matter) may not necessarily be
- right for you.
-
- ---
- Mark A. Breland - Microelectronics and Computer Technology Corporation (MCC)
- Ada Fault Tolerance | voice: (512) 338-3509
- 3500 West Balcones Center Drive | FAX: (512) 338-3900
- Austin, Texas 78759-6509 USA | internet: breland@mcc.com
-
-