Paying Off Big Debt - June 2018

[iris lilies]

I forced the help on this one.

we are still subsidizing the youngest (22) for health insurance and phone, but she just got promoted at work (after 4 months on the job!) and there is a plan to taper her off. The health insurance is a little annoying, because she can stay on dh insurance until she is 26. However, because her employer offers health insurance, we have to pay a premium to keep her in dh’s. If her employer did not offer health insurance, she would still be included on ours at no extra cost. Her employer’s insurance is not as good and the payroll deduction for her part of the cost would be more than the premium we are paying. So.... eventually, she will pay the premium. She will also take over the phone, but we are gifting her a year on that. She just finished paying off her car.

she is getting boots and baking dishes for Christmas.

That is great that your daughter paid off her car. Does she have any debt at this point? She’s in a good place in her life if she’s 22 and has no debt and a job.

[Chicken lady]

Two (plus one) of my kids have mortgages. The one who just paid off her car is a renter. I don’t know if two of the biokids, the bonus, or the in-laws have a car loans. Bonus kid has some student loan debt and one in-law kid might (or ds might have paid it off)

[iris lilies]

Two (plus one) of my kids have mortgages. The one who just paid off her car is a renter. I don’t know if two of the biokids, the bonus, or the in-laws have a car loans. Bonus kid has some student loan debt and one in-law kid might (or ds might have paid it off)

Well mortgages – that is a different animal. Personally I consider a Mortgage to be undesirable debt, a noose around one’s neck. But financial wizards argue that having a Paid off house is silly when you could take that capital and invest it at a higher rate than the low mortgage rate of today.

[Chicken lady]

I think if you have the money earning more interest than the mortgage is charging you, it makes sense. That is why we have a home equity loan - we could have used savings, but the savings is earning more than the home equity loan is charging. So basically, the bank is letting us use their money to make money for us. (The difference in the two interest rates) we could, at any time, give their money back (pay off the loan) and stop doing that, but why?

[Teacher Terry]

As long as you don’t buy too much home I think it’s fine because otherwise you would be paying rent. You have to live somewhere.