View Single Post
  #26 (permalink)  
Old 08-30-2006, 06:59 AM
Broken Arrow Broken Arrow is offline
Foot in mouth diseased
 
Join Date: May 2006
Posts: 4,657
Points: 25090.40
Donate
Default Re: Hypothetically: Debt or Emergency Fund?

Quote:
Originally Posted by safari
The inerest earned is taxable, but don't forget that the student loan interest paid is tax deductible (in most cases). So this is pretty much a wash.
Not if you owe as much as I do.

Also, I realize that disaster could strike anyone, including me, but again, it's all situational. For example, I do not live in Florida or New Orleans, so while the example holds true, it does not hold true for everyone, including me.

I think, in the end, we're all debating for what the answer is, and we all have different ones... but that sounds about right to me because I honest believe that it depends on what your risk tolerance and what your perceived probability of being exposed to any certain kind of disaster is.

That's all.
Reply With Quote