Nothing but the mortgage for debt is great. I really rushed my mortgage plan as fast as I could, because the interest accounts for so goddamn much of the repayment. Made it a 30-year plan just to be sure my own monthly budget could handle it, then made large lump-sum deposits whenever I had a good amount available.
Yeah, I could work on getting rid of the mortgage, but it's so small and so low interest I just don't bother.
I remember with cars though, when I first got a car loan at 25. I started looking at the interest and wondering why the hell I wanted to give that to the bank. So I paid it off pretty quick. My plan since I was young-20s was always to improve and never go backwards. It started really simple. One example, I realized that insurance could be had cheaper if I paid for the policy in a full lump sum. That next policy term, I paid the policy and then saved the money to pay in full for the next one. Now I'm done, I save for the future one every term and pay it in full. That's let's say $50 a year I've kept in my pocket. I did the same thing with cars. After I paid that loan off, I saved a reduced amount from the payment for 5 years while I used the car I had. Then the next car I just bought and now the banker doesn't get his cut.
Nothing but the mortgage for debt is great. I really rushed my mortgage plan as fast as I could, because the interest accounts for so goddamn much of the repayment. Made it a 30-year plan just to be sure my own monthly budget could handle it, then made large lump-sum deposits whenever I had a good amount available.
Yeah, I could work on getting rid of the mortgage, but it's so small and so low interest I just don't bother.
I remember with cars though, when I first got a car loan at 25. I started looking at the interest and wondering why the hell I wanted to give that to the bank. So I paid it off pretty quick. My plan since I was young-20s was always to improve and never go backwards. It started really simple. One example, I realized that insurance could be had cheaper if I paid for the policy in a full lump sum. That next policy term, I paid the policy and then saved the money to pay in full for the next one. Now I'm done, I save for the future one every term and pay it in full. That's let's say $50 a year I've kept in my pocket. I did the same thing with cars. After I paid that loan off, I saved a reduced amount from the payment for 5 years while I used the car I had. Then the next car I just bought and now the banker doesn't get his cut.
Making sure the banker doesn't get his cut is a great motivator to avoid debt. Too bad most people only see everything in monthly payments.