Originally Posted by
Trip7
In today's environment it's poor capital allocation to pay off any long term debt that has 5% or less interest, particularly mortgage debt that also has tax benefits for high income earners that itemize
I also wiped out a 0% car loan they were begging us to take during Covid. The horror!
I think I made 2 payments before I said that was enough. Poor capital allocation? Sure. Does a Delta pilot need lo leverage a car loan (or cheap mortgage)? No.
Call debt reduction poor allocation if you want. Simplicity vs optimization.