University of Derby

Derby

Should i invest in Gold, or pay off my student debt?

john2054

???

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Reply 1

hihihihihi

Did you invest in the hair cut?

University of Derby

Derby

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Reply 2

curiousduck

its not your money okay

Reply 3

Charles III

What happened to the credit card you maxed out? :holmes:

Reply 4

username2269391

Gold is a long-term profit investment . If you wanna make money on it then you buy loads of small amounts when the price is low then sell it after 3+ years when the price goes up so there's no reason you can't do both

Reply 5

john2054

Original post by hihihihihi

Did you invest in the hair cut?

apparently so

Reply 6

john2054

Original post by iEthan

What happened to the credit card you maxed out? :holmes:

i cashed in some of my gold to pay it off. I still owe some however, but i am getting my last student finance on the 4th of april, which gives me some more flexibility.

Reply 7

Camilli

If you care about reducing your debt now, do that first. If you're going to delay repayment, make sure you're putting money in something with a higher expected return than the cost of the loan. Further education is an obvious destination. Gold is very unlikely to be in that category.

Reply 8

Charles III

Original post by john2054

i cashed in some of my gold to pay it off. I still owe some however, but i am getting my last student finance on the 4th of april, which gives me some more flexibility.

Oh boy!!!!

Reply 9

john2054

Original post by JavaScriptMaster

Thanks, i may just do that.

Reply 10

john2054

Original post by Camilli

hmmm i don't know what to say back to this? Clearly paying off my debit cards would be the sensible option i guess?

Reply 11

Camilli

What rate are they charging?

Remember, that this will be after-tax. To do better, you'd have to get the interest rate plus enough to cover any income tax on the earnings. I don't know what taxes are where you live, but if you're covering, say, 18%, that could mean needing to earn over 25% pretax. Hard work, and not something to just count on.

(edited 8 years ago)

Reply 12

john2054

Original post by Camilli

I think in my country (the UK) credit cards are exempt from tax. I pay about 30% p.a. on most of my cards, and about 6% on my student account. But I would like to pay them off. Actually the last time i took out money, it was to give my wife a top up worth £600. Such are the costs of marriage i guess!??

Reply 13

Camilli

Paying down the card amounts to a risk-free 30% return after taxes.

Reply 14

john2054

Original post by Camilli

Paying down the card amounts to a risk-free 30% return after taxes.

I guess so. I am actually thinking of applying for a new credit card in the next couple of months or so, just to maximise the credit limit i have available, at any one point?

Reply 15

Camilli

If you need the credit, then you need it. But it will cost you. Just make sure that you get more for your money after you spend it than you are paying to the bank.

Reply 16

john2054

Original post by Camilli

Paying down the card amounts to a risk-free 30% return after taxes.

But then the student debt only costs something like 1.5% pa but, i will owe something like £25k next month, so i would like to start to bring this down as well, even though i 'technically' don't have to, until i start work!??!

Reply 17

john2054

Original post by Camilli

If you need the credit, then you need it. But it will cost you. Just make sure that you get more for your money after you spend it than you are paying to the bank.

I also want to pay for a good virus checker (Malware bytes, subscription).

Reply 18

whorace

That hair is way better mate good choice.

As for people saying it's not his money, a loan is a loan, the idea that people cannot use loans to invest undermines the entire economy so quit being a peasant.