Depends on the point of view. If your biggest risk is you spending that loan money on gambling, then yes paying the debt early would help you get in less trouble.
From an economic point of view, if you don’t need that money at the moment, you should invest it, so that you can make a few bucks. If you get 1-2% more on every transaction that way, it really does stack up at the end, since this will make you exponentially more money.
Hmm I’ve never thought about it that way. Definitely seems like we’d be better off not getting taxed by employers throughout the year, as then it can offset mortgages etc before paying up.
It’s more about non interest scenarios. If payment isn’t due for 30 days, you wait 30 days to pay. If it’s a place that won’t fight you, wait 40 and then pay.
Collect what you’re owed as soon as you can. Pay what you owe as late as you can.
UPDATE: “Every accusation is a projection” is more universal than some of you would like to admit.
Feels like that’s how a lot of wealthy people/organizations operate
The asshole’s philosophy
Why? Seems to me paying debts early is good advice, less hassle dealing with those loan sharks.
Depends on the point of view. If your biggest risk is you spending that loan money on gambling, then yes paying the debt early would help you get in less trouble.
From an economic point of view, if you don’t need that money at the moment, you should invest it, so that you can make a few bucks. If you get 1-2% more on every transaction that way, it really does stack up at the end, since this will make you exponentially more money.
Hmm I’ve never thought about it that way. Definitely seems like we’d be better off not getting taxed by employers throughout the year, as then it can offset mortgages etc before paying up.
Ok, with you so far.
But if there’s interest, this is going to screw me over as I’ll have to pay more interest (on a CC / etc)
What am I missing with the second one?
outlive your creditors in an unstable land?
It’s more about non interest scenarios. If payment isn’t due for 30 days, you wait 30 days to pay. If it’s a place that won’t fight you, wait 40 and then pay.
Companies do this all the time.
That makes sense; I figured that was the case but OP never said that.