How much did I "F" my credit... (student loan related)

[Brad1970]

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Since you're young and naive, let me give you a little unsolicited advice: Pay off these stinking loans ASAP, and stay out of debt forever. The only debt you should ever take on is a mortgage on your home. You do not need credit cards to live, and you do not need to finance your car. Use only cash and a debit card.

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This is pretty horrible advice.

The interest he is paying is so low that there is a very good chance he can make more in interest - taxes than he is paying in loan interest. He should NOT pay these off right away, for the same reason that one should not pay off a mortgage.

Also, there are a number of reasons why credit cards are a lot better and more secure than debit cards. These include much better security and usually better rewards.

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You are assuming that at the OP's age he is financially responsible enough to pay off credit cards every month. The interest charges you incur by not paying the balance monthly will trump ANY reward system they offer. You are also assuming he is responsible enough to invest/make interest on the monies earmarked for the student loans instead of buying a "balla" car or "balla" watch or "balla" PC monitor so he can play poker online. You make alot of assumptions about a 22 year old...your ideas may look good on paper but for most people his age, they're just plain unrealistic.

I'm with Big Boiler...pay off that debt.

[emon87]

Ok, fair enough. If he is not responsible, then pay it off. I agree that some people can't handle credit and debt well, but I was assuming the best for OP.

As to why you shouldn't pay off your mortgage - you get to deduct your mortgage interest from your income for tax purposes, along with the fact that mortgages are usually at low rates, so arbitrage is possible.

There are a number of cases where debt, used responsibly, is good. To categorically say that debt = bad is not true.