Quote:
Originally Posted by billethkid
Not all debt has to be "bad debt".
One example; If one has sufficient funds to pay of the 3 or 4 percent interest rate home mortgage ........do not pay off the mortgage....instead invest the same amount where one can earn 6% and better. Hence allowing a 3 or more percent interest earned each year......by keeping the mortgage.
Not a matter of right or wrong or good or bad....just a very personal and to each his own comfort choice.
|
Another view- Paying off the bond is essentially an absolute guarantee of a reduction in expense equal to the interest cost. Other than USgovt debt, I know of no other absolute guaranteed return. Regardless of the claims of the issuers.