All Forum Posts by: Jared Cruz

If your loan payment is $1000 per year and $300 of that is interest, that means that $700 is loan pay-down.  Your actual COST to use that money is $300. (Note: that costs goes down every year as the loan is paid off.)

If you can earn $500 per year in interest and pay $300 per year in interest that means you are making $200 per year profit off that cash.  So in five year you will have at least $1000 more cash in your pocket than if you paid off the car loan today to "save" money.   It's counter-intuitive, yet absolutely true. 

This is a very simple example, and it is the kind of math that keeps a lot of people in the middle class while a few become millionaires.  It is critical to understand how to have money make you money.  Being debt-free doesn't put food on the table.

Hey @Jared Cruz,

This scenario all depends on your financial comfort level. In theory, it sounds great to wipe your debt away. However, you also have to way that against potential opportunity loss of investing elsewhere. A low interest debt such as your car loan at 3% would be something I’d happily keep while putting my money in other investments that get a much higher return. You should start learning where you’d want to start investing and maybe find something that you enjoy/works for you such as a side hustle that could make you a lot more than saving that 3%. 

Again, paying off you debt may not be a bad idea for you and your situation. But, that’s assuming you have nowhere else to put your money and that it also gives you peace of mind. 

It is a terrible idea.

You can probably find a savings account these days that will make you 3% which means you effectively are not paying interest, and you get to keep the cash in case of emergencies.

When you get good at investing and can make that money produce 10%, 20%, 30% or more, having cash to invest is much better than paying off debt.

I currently have a loan on my truck and also have plenty of cash, so could pay it off any time I wanted.  I don't because I know I can earn way more than 3% on my investments.

Jared Cruz - you're doing all the right things with your police report, etc.

1. Email photos and police report. Request the repairs promptly in writing for your family's safety. (Email and letter). Ask for a timeline for repairs. If it's not a security threat to you, say this happened and you don't care if it's replaced now, but this is documented so you will fight any damages coming out of your sec dep. Your landlord probably doesn't want to replace it before he has to.

2. Do not lapse on your rent. Anyone telling you not to pay is telling you to violate your lease and to get evicted / lose your security deposit.

3. Try to get a direct number where you can get yes/no authorization to make repairs and withhold it from the next rent check with receipt. Some landlords are ok with that.

I would be getting up and out of there in a hurry! I could never get myself to rent a property but if I did I would want nothing to do with a landlord like that.

@Jared Cruz,

Out-of-state / absentee landlord?

... or just doesn't care about his property? Let the rent go late, I'bet you'll hear from him! ... or his property manager.

The owner's insurance should cover the damage to the structure - he shouldn't be coming after you. If no insurance, maybe you should consider moving.

Keep after it, or make sure you're not skipping over the property manager, if there is one.

Take photo's of damage, Call the police dept to report the attempted break in and ask the police to come out to see damage and take a report. Send landlord photo's and copy of incident report. With written request to repair within 5 days.

Keep track of calls to landlord and if not repaired call the city inspector about broken door. that might get owner's attention.