What Counts as High-Interest Debt?

Money Guy Show

Brian Preston, CPA, CFP®, PFS and Bo Hanson, CFA, CFP® | Fee-Only Fiduciary Advisors

Investing, Education, Business

4.7 • 3.1K Ratings

🗓️ 22 November 2023

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

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Summary

With mortgage rates increasing, let's talk about what we consider high-interest debt, and how to approach it! We'll walk you through that question and more in today's Q&A episode! Jump start your journey with our FREE financial resources Reach your goals faster with our products Take the relationship to the next level: become a client Subscribe on YouTube for early access and go beyond the podcast Connect with us on social media for more content Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	I'm excited. We got some spicy questions coming in. I'm going to kick us off with one.
0:12.1	The agent of chaos over there get excited?
0:14.4	Look at him.
0:15.4	He's put something in there.
0:18.2	All right.
0:19.2	So spicy question number one is from Derek.
0:22.5	It says, with mortgage rates above 7% on average,
0:27.4	is it still fair to consider a 6% student loan,
0:31.9	a high interest loan in your 30s.
0:35.0	Should it be low interest if a mortgage is low interest?
0:39.2	So let's talk about it.
0:40.0	Let's talk about these interest rates changing.
0:42.1	Let's talk about the different kinds of debts.
0:43.6	What do you think?
0:44.6	Yeah, so first, I think it's worth acknowledging.
0:49.6	Mortgages and homes and education are different types of assets, right?
0:59.0	The education that you went to achieve that you borrow the money to go do is going to be an incredibly
1:05.9	valuable thing and it's going to have an ROI and it's likely going to cause you to be able to make
1:10.4	more money later in line. But it's not something you can sell.
1:13.4	You can't be like, hey, I just got a degree from XYZ University 10 years ago.
1:17.4	I would like to sell that degree to you for more than I paid for it.
1:21.2	That's not the way it works, right? Mortages, homes on the other hand are that
	...

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