Why paying the minimum on your debt is a form of life insurance

[Modest_anteater]

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If you die you no longer owe the debt. Your debt will get put against any assets you have for your estate though so it's important to keep everything as liquid as possible. So if you pay the minimum you are hedging against an early death. It's win-win. If you get to enjoy a long life you have the negative of paying a lot in interest. If you have a short lie you get the positive of never having to repay all the debt (other tax payers do it for you). I have known several pharmacists that have died in their 40's and it is not uncommon for men to die in their 30's and 40's. I just wanted to share this college debt repayment strategy. Thank you for your time

 

[mentos]

I mean, why pay any debt at all then? Max out credit cards, if you die you won't have to pay them back!

 

[alpha12]

If its a federal loans it will get discharged. If it's private you would have to check the terms of your contract.

 

[alpha12]

I mean, why pay any debt at all then? Max out credit cards, if you die you won't have to pay them back!

With some debts they will use your assets to pay them.

 

[321931]

If you die you no longer owe the debt. Your debt will get put against any assets you have for your estate though so it's important to keep everything as liquid as possible. So if you pay the minimum you are hedging against an early death. It's win-win. If you get to enjoy a long life you have the negative of paying a lot in interest. If you have a short lie you get the positive of never having to repay all the debt (other tax payers do it for you). I have known several pharmacists that have died in their 40's and it is not uncommon for men to die in their 30's and 40's. I just wanted to share this college debt repayment strategy. Thank you for your time

So in the end what you are saying is that your debt is erased and so are any personal assets if you have any?

What about your children that are in high school? Because dad never paid off his debts at all the house is sold in estate and they gonna be living on the streets?

They don’t get anything? To bad so sad sorta deal?

That’s sucks. If I ever pass away early, I would want to make sure my kids and wife will be ok financially after I’m gone. That would be my only wish on my death bed.

 

[alpha12]

So in the end what you are saying is that your debt is erased and so are any personal assets if you have any?

What about your children that are in high school? Because dad never paid off his debts at all the house is sold in estate and they gonna be living on the streets?

They don’t get anything? To bad so sad sorta deal?

That’s sucks. If I ever pass away early, I would want to make sure my kids and wife will be ok financially after I’m gone. That would be my only wish on my death bed.

Federal loans get discharged. Means you do not have to use your assets to pay the debt.

 

[Sine Cura]

If you have a short life you don't have to grow old and possibly incur massive medical debt.

 

[BC_89]

I can understand some arguments when it comes to loans (in that you should invest your money with interest rates below 7% to time the longevity returns of the market).

However, if you must treat minimal payments as a life insurance policy based on a possible early death, you need to start reevaluating your life as a whole.

 

[owlegrad]

If its a federal loans it will get discharged. If it's private you would have to check the terms of your contract.

Difficult to check terms of your contract when you are dead.

 

[alpha12]

Difficult to check terms of your contract when you are dead.

Yes. It's a good idea not to wait until you are dead to read it. In fact, you should probably read it before signing.

 

[owlegrad]

Yes. It's a good idea not to wait until you are dead to read it. In fact, you should probably read it before signing.

"WHOOOSH"

 

[NITRAS]

I got a million on level term for like $800/ year. So..........yeah. Keeping student debt around is a dumb idea. If you knew you were dying, you could make the argument.

PS liquidity has nothing to do with this at all.

 

[Tua09053]

hhhmm if you are planning early life death why go into debt at all? why not just not go to school and enjoy life day to day take temp jobs?

 

[TerryTerry]

I kinda do agree with you.
However, it`s still better to pay off the loan ASAP if you have a good stable job with a plan for future.

 

[sozetone]

If you die you no longer owe the debt. Your debt will get put against any assets you have for your estate though so it's important to keep everything as liquid as possible. So if you pay the minimum you are hedging against an early death. It's win-win. If you get to enjoy a long life you have the negative of paying a lot in interest. If you have a short lie you get the positive of never having to repay all the debt (other tax payers do it for you). I have known several pharmacists that have died in their 40's and it is not uncommon for men to die in their 30's and 40's. I just wanted to share this college debt repayment strategy. Thank you for your time

I never thought i would be saying this on here, but thats not too cool to be saying.....lol. morbid topic,

Don't let the federal loans bother you, pay when you have a job, as you should, and dont pay when you dont.....there will probably be NO social security left for our generation anyway, which is where i hear they suck it out when you retire and have not paid in full., (if you make it to the probable new age of 99 to collect)......lol