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No. of Recommendations: 8
I want to make the point that, with whatever debt anyone has, you should look at the "cost" of that debt compared to other things that you can do with the money.

My argument here for a couple of years now has been that if the government is offering good terms and a (relatively) low rate, you take that deal for as long as you are allowed by the rules, and you use your cash to build something else in your life (a portfolio, a home, "peace of mind").

I am always saddened when people are in a hurry to pay off a debt that is (again, relatively) the least burdensome of the many consumer kinds out there. They make intense sacrifices to come up with a fixed monthly amount, and yet end up not much farther ahead, because of other things that require their attention, too.

You know, I said this a year or two ago, that Congress fought for these benefits for students. AND, it can even be said, that in a number of states, your tax money is really covering any benefit coming out of student loans (so you yourself may really be paying for the better terms!)

I know there are reasons why loans just "have" to be gotten rid of (total consumer debt payment limits on mortgages, for example). But I don't see why even a small student loan should take precedence over a car loan, or any student loan over a mortgage payment. Even when the net-of-tax interest cost of the mortgage is lower.

So it would be good if people maybe just try to make these things "no worries", by saying "yes, they're out there", and deal with them in a way that allows you to focus on other things.
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