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5 Questions: Stack vs Snowball, College Wisdom, Comcast ETF

Nov 19, 2014

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It’s the episode devoted to your questions. Today we talk about the stack vs snowball methods of debt reduction, college wisdom, and Comcast ETF.

1. What is your advice for an 18 year old with a part time job about to start college? College Info Geek is a great resource for college kids. Make as many connections as you can, join clubs, get to know your professors, join a fraternity. Apply to every scholarship known to student kind. We did an episode about that.

2. If you have one student loan at 7.15% do you attack that first or pay across both loans? If you want the emotional win, pay the smaller one first and then use that payment towards the larger one. Mathematically though it makes more sense to attack the loan with the higher interest rate.

3. I have $50,000 in cash in a savings account earning .85% interest. Leave it, move it to Betterment, or pay loans? Oooh, I felt you all cringe. I cringed too. Someone jump him in. You’re paying 7.15% on your loans, pay that off first! Then invest. Then close the savings account.

4. I know the stack method is superior to snow ball but I have a small debt of $500. Should I continue to stack or just pay it off? For something that small, just pay it off and then throw the payment at the higher interest debt. Unless your interest rate is very high on the other loan. But since you just have two debts, getting rid of one would simplify things.

5. I want to dump Comcast but they want to charge me $300 for early termination. Should I just eat it? If you have more than two months left, eat the fee. If you can pay on a credit card, cancel the card and screw Comcast! They’re evil so fuck them.

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