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Can you reduce your expenditure too and concentrate even more than you're planning on repaying the debt?
Perhaps you could set a target to have the loans cleared by. Say within 16 months.
Not from the point of view of cost - i.e. the total interest costs if you start paying off the debts now versus leaving them to rack up more interest into the future. Putting money away into savings/investments while carrying debt usually makes no sense. I certainly don't think that it makes sense here.Would it not make sense to minimise the debt repayments now and improve my monthly cashflow and then take care of them in a few years when I can better afford it?
Not from the point of view of cost - i.e. the total interest costs if you start paying off the debts now versus leaving them to rack up more interest into the future.
What about the arguement that say in 3 years time I could be earning say 50% more. Would it not make sense to minimise the debt repayments now and improve my monthly cashflow and then take care of them in a few years when I can better afford it?
It's an argument I often heard in my twenties from people with similar earning capacity. All the ones I can think of still don't own a home or have huge mortgages now.
Is that the ultimate end game? What's the advantage of buying a home in the current climate of falling prices?
I'll make a generalisation now that mightn't be correct but most people that buy a house get out of college in their early 20s, then spend 3 - 5 years carousing and being the ideal customers for banks. Then as they approach their late 20s they start to worry more about their future and learn the concept of delayed gratification which has been completely alien to them up until then.
I could do that, but it would be a very lean 16 months.
What about the arguement that say in 3 years time I could be earning say 50% more. Would it not make sense to minimise the debt repayments now and improve my monthly cashflow and then take care of them in a few years when I can better afford it?
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