Reply to UMC deep in the negative

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]After reading all of this, just wanted to share the advice my firm’s free PWM advisor told me re:loans. Paying them off before investing in anything (a house, equities, even my 401k) is not a choice. Because, at the end of the day, paying them off IS an investment, in and of itself. Every cent I pay towards them now, is multiple more cents I won’t pay down the line.

He told me that I cannot truly worry about anything outside of an emergency fund before wiping these out. Sorry if totally off topic, but the reframing (paying off loans = investing) really helped me jumpstart getting serious about getting them down ASAP.[/quote]

OP here, that is a great way to look at loans you are able to pay off but not really applicable to my situation. My large loans were in negative amortization for 2 years before I made a decent salary making my loans more a loss I need to shield from liability. So instead I purchased a townhouse which DH and I  can afford. I titled it in a way where if we default on our student loans our creditors will only be able to garnish our wages if it ever came to that. Not a big deal at all to pay a 15% garnishment as it's far lower than my actual payment.[/quote]

You are a piece of work, OP. I truly hope younger people read this entire thread as a cautionary tale.[/quote]

Let's just say I learned a lot during my private practice days helping people with "debt modifications" and collections defense. [/quote]

This is why they need to include a basic life finances class in school. OP is out of her mind. [/quote]

I agree that OP is out of her mind, but I understand what she's saying about the house. She and her DH likely titled the house as "tenants by the entirety" (my house is titled this way too.) It is a legal protection reserved for married couples basically meaning that the "marriage" owns the house rather then either individual. If either she or her DH are sued for any reason by a creditor, they can't access the home equity for an individual debt. Since the student loans are individual debt, the home equity is untouchable. All married people should title their homes this way - its completely free to do so if done at the time of purchase and provides a ton of protection and no down side.[/quote]

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