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Subject:  Re: Any Advice? Date:  1/12/2005  10:21 AM
Author:  NHDad920 Number:  43990 of 88543

As preben mentioned in his post the "feel good" factor is a major part in this decision. In terms of getting the most bang for your buck, paying off the highest rate debt first is the way to go and keeping low rate debt when you can get a higher rate of return investing makes sense too.

However, my wife is at home with our 10 mo. old , and pregnant again, so I am the sole wage earner. About two years before my wife left her last job to stay at home she was laid off from her previous job and got a severance package that was about 6 months of salary. Since we were already planning ahead for her staying at home we opted to pay off a 4.9% car loan and a 6.0% student loan with the money instead of investing because we were wanted to increase our monthly cash flow and my wife felt much more comfortable getting rid of some of our debt before giving up one income.

Now we're living comfortably in a house we'll probably be in till the kids head to college, we're doing it on one income because we have fewer monthly obligations, and as my salary continues to increase we're putting all of those gains into our retirement investments.

Good luck with your decision - at the end of the day do whatever helps you and your wife sleep well at night.

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