Thank you Georgy, that paints a much clearer picture for me.
Essentially it behooves me to pay off my line of credit as fast as possible because the longer it takes, the more interest I'm paying which in turn eats up my total profit for that single investment.
I did the math based off the following numbers. $10k line of credit at 8% , 10 year payback, $121/month payment. $1k personal cash flow after all bills/expenses paid.
I invest $10k into whatever vehicle Tardus coaches me on. 3 year amortized schedule on let's say Prosper for example at 8%. Prosper will yield me approximately $313/month for 36 months yielding total payout of $11,281.
It will take me 8 months paying off my original $10k loan of 8% interest, for a total cost of $10,297. I essentially paid $297 in interest. (Assuming I'm making $1,313 monthly payments)
However, my Prosper investment is yielding $1,281 over the course of 36 months(3 years).
$1,281-$297 = $984 profit from my initial investment paid over a course of 36 months, pending no defaults from Prosper.
Do I have it about right?
Consultation scheduled for November, looking forward.
