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Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: Student loan scenario||Date: 11/12/2012 2:40 AM|
|Author: kahunacfa||Number: 306411 of 307556|
I would like to hear opinions on whether I should pay off a $13k student loan with a recent received inheritance or pay it off over time. The loan has a 6.8% interest rate. I am currently working with a comfortable income and have no problem making payments.Thanks for your input. - Flashg213 | Date: 11/10/2012 8:29:00 PM | Number: 306410
It is quite likely, since this is the Credit Card/Debt board that you have other debt with a higher interest rate than your 6.8% Student Loan debt. Either pay that off first or take the inheritance you received and invest it in a IRA that will earn returns tax-deferred for your own Future inheritance or those of your dependents.
It is actually quite easy to find investments that will earn more than a 6.8% rate of return. Some Quality Utility companies as well as Master Limited Partnerships and Pipeline Companies have dividend yields that exceed 6.8%.
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