Hi,
I have been reading the forums and developing my financial understanding but I have various ideas that many people say its 'personal choice". Can anyone help me become more confident with my financial decision?
I have 2 personal loans & a home loan (investment)
one Personal loan will be paid off in a months time – Yeah
The second personal loan has about $28K remaining on it. We took out this personal loan to allow us to enter into a family investment concordium.
We have had our positive geared Investment home loan for 8 months. Good tenants so far!!!
we have 8K aside, what do I do?
I want to reinvest
I want to pay off the personal loansPlease help
If the $28k Personal Loan was used for investment with the Family, wouldn't it be a tax deductible loan?
In the event that it isn't, I would be hacking away at that loan as hard as possible as the longer the Loan exists, the more (bad) interest you will be forced to pay – wasted money.
Put the $8k in the Personal Loan in my view.
There is an argument that if you compare the interest saving from paying the $8k into the Loan to what the return might be if you invested it elsewhere, you might do better to invest it elsewhere, but even if you were to get a better return elsewhere, you still have the loan interest which diminishes the return, and the key word is MIGHT get a better return.
At least if you pay down the loan with the $8k, you KNOW you will definitely save some interest.
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