tyrius.

If I can earn the same return in a 100% safe investment then I am not going to pay that debt off early. If I can't get something equal, then I will work to pay that debt off early. I've got like 7 years to go on my student debt and I wish I could change it to 25 years. The interest rate is so low that it doesn't matter. This entire discussion really only applies to a few types of loans, primarily some student loans and mortgages. Car loans (even the 0% ones) are almost always too high. To get the 0% interest you're paying a higher price up front. You have to see what the discount is for not taking the 0% and then figure out if it is worth taking the 0% or paying the bank rate of interest or holding off and paying cash. This is all my opinion though and other's opinions vary. I'm just trying to provide examples and explain why this is my opinion.

Given the uncertain times (job market, stock market, bond market, etc) I would rather have control of that money than pay off a loan more quickly. Let's say something bad happens like getting laid off. Hopefully, one has an emergency fund, but given the current job market that emergency fund may not be sufficient. Would the emergency fund be sufficient if you got sick while you were laid off? What about if you had major car problems, house problems, etc.? If you put that extra money in a CD then you can get it and use it in an emergency. If you don't need it, then you didn't lose anything because the interest that you are collecting is the same as the interest that you are paying. If you used it to pay the loan off faster then it is gone for good. In my opinion, it's the LEAST risky thing to do. There are many, many other options but they all have varying degrees of risk associated with them. The CD was one simple example of how a guaranteed investment can earn as much, if not more, than the interest that one is paying. It fit my example perfectly because both the principle and the return are guaranteed (provided you don't withdraw the money early).

But I did. I used a CD from a bank so the risk is zero (it is FDIC insured) and the return is guaranteed. I did forget to take out taxes from the cd so it's currently basically a wash, but as CD rates rise (hopefully, because that will mean that this recession is over) then the CD will outperform paying off the debt. However, with it being a wash I still think you're better off putting that extra money in the bank because then you have it in case you need it. If you send it to the bank then you no longer control those funds and if you need it you can't get it. I'm not trying to argue about this. Just trying to help the OP in making his decision regarding what to do by providing another viewpoint. 8-)

Dave Ramsey. He's a nationally syndicated radio host that also writes books and has a course on becoming debt free.

Being debt free is most certainly better than the alternative. Dave's plan is solid and better than many of the alternatives. I just think he goes one step too far (or is missing a step).

That's assuming that one's savings are only placed in an IRA/401k type of vehicle. Money market accounts can be used with no penalty and they can pay more than the cost of interest. To turn your question around on you, what happens when in the middle of rushing to pay off your debt you get laid off. You'll probably wish that you had set up a good amount of savings first. That is a risk, but if one has substantial liquid savings then they will be able to make those payments. I hear you there. No car payments for me! No boat either so I better not be paying for one! I'm not saying that debt is good. Car loans are typically going to be expensive and provide one with no other benefits. Credit card debt should be paid off immediately! I'm only saying that not all debt is bad. For example, let's say my student loan interest rate is 4%. That interest is tax deductible so the effective rate drops to probably something like 3.5%. Ingdirect is currently paying 3.75% for a 12 month cd (that's a zero risk investment and it's an abnormally low amount). So, by paying off my student loan early, I'm actually losing out on a higher return on my investment.

The answer completely depends upon the interest rate of your debt. If it's really low then you may be able to make more money on savings that it costs you in interest. Plus, having a savings cushion is ALWAYS a good thing, especially if you want to start your own business. My student loan interest is less than 4%. With tax deductions that amount is even lower. I'm in no hurry to pay that off. However, I had other loans that had higher rates and I paid them off early. I don't necessarily agree with the eliminate all debt at all costs crowd. Real life isn't that simple and one needs to weigh the interest rates vs. other rates of return to see if one will come out ahead or not.

some type of brown, green, or black.

At least he wasn't trying to extort a $50,000 campaign donation from the director of a CHILDREN'S HOSPITAL!!!

If that's true, his name wasn't Edwin Edwards http://en.wikipedia.org/wiki/Edwin_Edwards However, Edwards IS currently in prison. Score one for Louisiana!!!

Our state motto is "Vote Early and Vote Often!!!"

Now that's a true statement!!

Hmm, our last governor is in jail for racketeering and fraud. Our current governor will be sharing a cell with him. I think that one wins. Chicago corruption is also much worse than any other place that I've heard of (even worse than the state!!!). They took your example of kickbacks and added to it. The city of chicago contracted with trucking companies to provide trucks but didn't have anything to put in them so the drivers got paid to sleep in their trucks. This went on for a LONG time too. At least you got new stairs!!! ;D

As I mentioned earlier, tackletour did a wide variety of tests on various flouros. Read their results here: http://www.tackletour.com/reviewfluorocarbontest.html and http://www.tackletour.com/reviewfluorocarbon2.html

Mono - great all around line. "Floats" for topwater presentations, comes in different varieties from limp to strong (XL vs. XT or Big Game). Stretches more than most other types of line. Flouro - same refractive index as water so it "appears" invisible underwater, sinks, abrasion resistant. Should be more sensitive than mono. But, not as manageable as mono. People also say it stretches less, but Tackletour's testing showed this to be not necessarily true. Copoly - attempts to get the best out of both mono and flouro while removing many of the disadvantages. Briad - strong for the same diameter, can use smaller diameters to cut through vegetation while maintaining high strength, not very abrasion resistant, some issues with "shock" strength (can snap the line on hooksets), very limp, "floats". Just my high level observations/opinions. Feel free to discredit them.

Not me all that ponds I fish are frozen!!! >

And I can't see how 3 pounds of pressure would be insufficient to drive the hook home. I don't get why garnet says that 3lbs of pressure is "pretty bad". 3lbs of pressure will sink a hook deep.

There are only two things that are mandatory in fishing. A hook and line. The rest is just making it easier to catch and land fish. Sure, the fishermen will be more successful if he/she has the proper gear, but that gear is not mandatory. Also, the increases in success are not linear with the amount and/or expense of one's gear. People fishing on a budget have to make choices as to where to spend their money. Their equipment must fit multiple scenarios. I fish frogs on a 6'6" MH rod with 12lb mono and have fun doing it and when it really comes down to it, that's all that matters to me.

Why is that bad? Do we know what pressure bass can exert to hold their mouths closed when they aren't expecting a hookset? If that pressure is only a pound then 3 pounds is more than is required.

X2 The best I can do is to pay for it! ;D

And from the other end of the spectrum Citica 200D 6'6" MH BPS Extreme soft plastics/jigs/spinnerbaits Citica 200D 6'6" M Crankin Stick treble hook lures Symetre 2500 6'6" M BPS Extreme weightless plastics/small jigs Pflueger something or other 6' Ugly Stick (hate it) small cranks (jointed minnows and such) I'm getting another Symetre for my b-day (couldn't pass it up for less than $50). Plan on buying a different light crank spinning rod and then a Citica 200E, Crucial 6'10" MH Xfast casting rod and a Crucial 6'8" M x-fast spinning rod. May end up with Compre's though. However, that'll take a while to get. :-[

Yes you can use it. You may find some issues with the flouro sinking and pulling your frog down though. I'm not too familiar with flouro, but I do know that it sinks. It may not be the most ideal setup to use, but you'll still have fun fishing it. I fish frogs on a MH extreme rod spooled with 12 pound mono.

Haven't even fished them. Saw them at Wal-Mart on sale and bought some. Same Wal-Mart had a TON of gammies on sale too so I stocked up on those. Those are the hooks that I've been using. Maybe if I get bored this winter I'll do some testing on the two.

Why not? I thought everyone likes dull, rusty hooks They're far from dull. In fact, I've taken a pack of Eagle Claw worm hooks and Gammie worm hooks (same size and everything) and examined them closely and was unable to discern any difference. They both caught on my fingernail with the same pressure, I noticed no differences in looks, etc, etc. The notion that Eagle Claws are dull is, in my opinion, unfounded.

Here's another one that looks "pretty good"!