Caleb Hammer's Student Loan Debt!

Here is my response to ‪@CalebHammer‬ during his Financial Audit - Student Loan Debt!
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[@SucioWolf93]

Turn the tables on our boy Caleb 😂

[@miguel4297]

Graham is also a hypocrite 😂

[@connorbrennan2920]

@@miguel4297yeah lol

[@Metal_Stacking]

​@jacobthomas1344 Yeah, cause the sp500 is automatically going to return 10% annually.

[@ryk3rofficial524]

​@@Metal_Stacking if it did literally everyone would be in on it. It's the market, it's still volatile any given year. Personally I'm always in the camp of clearing your debts instead of getting caught up in the opportunity cost of making some extra due to holding liquidity. Markets could turn and that sure thing you thought was consistent just isn't anymore. Unless you have the financial bandwidth to take the risk, just clear the debt people.

[@paulcole5435]

@@jacobthomas1344Neither of them are right or wrong, it’s just a difference of how you feel about money and debt.

[@FreedomOfThought2000]

It doesnt weigh on him emotionally because he can snap his finger and clear it. Debt only bothers people who cant pay it off.

[@BGD.2980]

That's 100...

[@PartyStationFinance]

Not true. I have hundreds of thousands and pay off all my debt 😊

[@marchelynrosario4584]

@@PartyStationFinancecare to share some?

[@slavemasta]

@@PartyStationFinancebro why are you in hundreds of thousands of debt to begin with 💀

[@ovalfps]

@@slavemastabecause they have an education.

[@chrisrobert5872]

Graham spent a day with Uncle Dave and is converted. 🤣

[@tomwallen7271]

Dave "Pay off your mortgage as fast as possible" Ramsey.

[@ceelothatmane9421]

@@tomwallen7271lol Dave “Rainy Day Fund” Ramsey

[@Sam-gc9yp]

​@@tomwallen7271well I'm 100 percent debt free with the house and it's a good feeling.

[@meatyeye]

Beans and Rice…Rice and Beans😅

[@ryang9973]

​@@tomwallen7271would you remortgage your house to invest in the stock market?

[@elc4967]

Caleb likely has high income too, so he doesn’t feel pressure from that debt.

[@simon3101]

Such high income that he can't even pay off his debts.

[@elc4967]

@@simon3101 did you even watch the video?

[@vins2610]

@@simon3101he just bought a $900,000 house and has over half a mill in investments He just thinks the student loans aren’t worth stressing over

[@NPzed]

@@simon3101 No, he knows he can pay it off whenever he wants. But he also knows he can use the same money to make more than the interest cost of the debt via investments. Its money in his pocket to not pay the debt down. Its a very viable method if used judiciously.

[@alexvictorin3495]

He's a millionaire lol

[@silentavenger24]

Graham is trying to give the same lesson Kevin O’Leary (Mr wonderful on shark tank) was trying to explain to him on their interview years ago. Kevin was telling Graham to pay off his mortgage on his rental properties bc graham will feel a great weight lifted once you pay it off (and Graham was saying he didn’t want to pay off the mortgages bc he could arbitrage the money for higher gains). The student becomes the master

[@leanneedwards3047]

So in the end, what is actually the best move financially, realistically speaking?

[@roamingkiwi9674]

@@leanneedwards3047paying the mortgages off instead of getting more debt was the right answer because few years on, (today) Interest rates are crazy!

[@PandabearFPS]

​@@leanneedwards3047depends on your situation and what makes sense for you

[@454ffv]

@@leanneedwards3047realistically is to arbitrage. We’ll mathematically it’s a no brainer. But like said in the video, a lot of emotional sentiment

[@jamesnguyen17]

​​@@454ffvye, depends on the size of the loan too. For instance, in Toronto, ppl normally break even with 1k5-1k9 renting for a mortgage loan before 2020. Now, it is reaching 3-4k. So imo, paying down those loans to as low as possible that even with double the rate, I still feel fine.

[@leechburglights]

one of the happiest days of my life was paying off my student loans in 2019.What made me happier? Paying of my mortgage in December of 2020 during the pandemic. Debt free feels soooo good!

[@TapInWithAshton2214]

Amen! My student loans are paid off. Next is creating a plan to pay off the mortgage in the next 5-7 years. I’m 31, the mortgage will definitely be gone by 40. And that’s just based on my current income. No bonuses, raises wife starting a business and contributing, none of that.

[@aspasia727]

Grats!! Next year I think our mortgage can be paid off...we may wait another year depending on the penalty of closing mortgage early and wait until end of term.

[@elliet1754]

Just a heads up to save your mortgage payment history because that history disappears from your credit almost immediately after it being paid off. I ran into their issues with approving applicants for a lower deposit because mortgage or rental history was required and the payment history of the mortgage after paying off was typically gone within a year

[@LinkStarzy]

get a 15 yr mortgage!! not a 30

[@user-iv9iv5gm2d]

I hope you got a tax deductible on your student loan payments.

[@jamesanderson6812]

Like the honesty of both of them . Logic and emotion and both valid .

[@Gifiti]

Best advice for a business vehicle. Make sure you can say “I use that car, it’s for drivin around” 😂

[@4everu984]

Student loans can strangle someone if things go south. Feels great to not owe anyone a dime, it is a freedom of sorts.

[@NatashaEstrada]

Student loans though are one of the most flexible debts you can have though. So it makes sense potentially to keep them knowing if things went sideways you could defer or forebear them or take an income based repayment etc. No other debt is going to give you that flexibility. I would take student loans at a low rate over credit cards any day.

[@Dara-ih6jq]

Debt is only bad when you can’t afford it. Debt is leverage. It’s like having a big heavy rock it can weigh you down or you can use it to propel you. It’s very much dependent upon the user of the debt and how it plays out.

[@Mike-89]

$37k isn’t even that bad for student loans.

[@CactusJack252]

Mine are 50k. I freaking hate it

[@27Zangle]

@@CactusJack252 Mine are at $60k and on hold for another year and then go onto the SAVE Plan. We're saving for a down payment on a house when the market comes back down, which it is slowly. I am nearing the cap for the current save plan for a family of four and if my wife goes back to work then I will have to make a small monthly payment. The goal is get a house in 1-2 years and then the follow 2-years pay the loan on entirely.

[@bohemianbookworm9361]

@@CactusJack25285K which I think is mid bc some are at 220K

[@trikkycane1638]

I'm at 26k so seeing this ain't as stressful

[@Astelch]

I’m at $3500 in sub loan. I’m pretty happy with it i dnt think ima borrow anything more than that and will pay it off completely when I graduate.

[@ethanmoore9306]

I didn't know I needed this colab

[@charlottelever6135]

The honestly and transparently is so refreshing

[@indianafarrell4440]

These guys have one beard between them lol

[@Me-Apesta-El-Rifle]

lmao

[@Tyrant1776]

The feeling of being out of debt will free your mind to be more creative.

[@Duffman19370]

Im gonna deduct my mortgage since i just sit around in it

[@beardywestwater]

you deduct interest

[@SoulShiina]

the cut was funny but he was def going to say he drives around for work lol

[@JoshuaVarghese]

“But I can deduct that. Because I use that car for like driving around”

[@jonasking3670]

Yeah, I was confused by that. What does he think we do with cars?

[@sunnydays405]

@@jonasking3670 He drives around for the purpose of "his business", there's probably some grey area where he can deduct

[@craigshak]

Driving around for business

[@dronad6125]

Driving from your house to and from work isn't something you can write off on taxes. But driving a company car (which is your personal car as you own the business) from your office and back (your home) to clients businesses can be put into your businesses expenses and get a tax break on. The richest of rich don't get rich by being smart, working hard or coming up with great ideas. The richest become rich by paying the least on taxes. When you're doing $100m deals saving 10% on taxes is huge but even for that small person making $60k a year but only getting $40k after taxes knowing how to change that to $55k after taxes is a huge difference. That's how debt makes you money, as you can increase your income 10x but with debt your income on paper has never changed and might actually be lower, meaning you're getting $600k a year instead of $60k now, but are only paying taxes on $40k due to debts and tax breaks. Making that over $560k you get pure profit without being taxed, but that money is being reinvested before you ever see it as that's how you are still in debt, but growing by millions ever year. Like Amazon.

[@jaad9848]

@@dronad6125 The business use is probably BS to the ratio that is claimed in taxes but some many people are fudging that part of the tax code I am not even sure if its intended to be enforced

[@faithbasedliving9391]

It’s not just an emotional thing, it’s also a burden if you ever do hit a financial set back. Better to get it out of the way if you can afford to get rid of the debt. You never expect hard times to get you. Then you’re faced with penalties with you don’t have the money to pay it.

[@muhammadtariq-ck2tm]

Caleb helps people with problems that seem physically impossible, but that doesn’t mean he can’t have problems that a lot of people have.

[@zlamanit]

But to be clear, in this case it’s not a problem. Considering that he has the money invested with it’s technically an asset.

[@ItsJro]

“But I deduct that because I just drive it around”… 👀👀 - The IRS

[@karateman302]

It's a 'work vehicle' wink wink.

[@trentswag9324]

@@karateman302lol yeah but as he just sort of admitted; that’s not exactly how that works. You can’t drive where ever you want non business related and write off your entire cars purchase. Or at least in theory, but tons of people do it anyways 😂 to then I say good luck!

[@daveb.3169]

All he has to do is pull out his phone and film a fee seconds at any destination and it was used for work. Even if the footage is never actually used

[@robw9728]

Nope. It would need to be weighted against personal use and he can only deduct through his business the portion that he actually uses for business.

[@wendyalban]

He likely already took the deduction on the full price of the Tesla the first year, maybe first few years. So no, he can’t deduct that, he already did.

[@renegauthier4593]

You should pay your debt anyway. Your portfolio shouldn't contain only an s&p indexed funds. You're portfolio also contain securities and bonds. These are used to secure your assets during a market fall and to liquidate and under catch the market in a down year to still generate gains even if the market lose. These bonds and securities shouldn't be undermine by debt. That debt could potentially increase the risk you take when funding your stocks with bonds in a recession. Coming from a guy who pretend to be an expert in budgeting and compound interest, its quite concerning.

[@MrNickyCz]

Always let inflation pay off debt.

[@anthonymallet2874]

I’ll been waiting for these two to link up. Now I want to see more

[@robseyes01]

I paid off my 18k loan in one year. Best thing I’ve done adulting

[@bigbuba5212]

"I'm also a hypocrite" that kinda self awareness made this man a millionaires

[@codycurnutte9778]

At the end of the day paying off any form of debt just gives you one less thing to manage and simplifies your life

[@stevefitchett6193]

Not if the debt is making you money. You need to learn to use debts for you rather than against you

[@stevefitchett6193]

Great review but I think for 50k less id take the 650s those guys have up for sale.

[@itsrelativ3967]

From an entrepreneurial mindset, my car loan is better than a student loan. You can start a business with your car to pay it off. I can't do that with a useless degree.

[@Weekend658]

Graham, is worth over $25 million now. It’s hard to not listen or engage in on his advice when given.

[@cheese22]

i love how honest Caleb gets

[@nukeba11]

He learned a lesson from Dave. It's risk. You don't want to have payments because sure the highs aren't as high but the lows are not as low. You don't have to worry about losing the house.

[@robw9728]

It’s a risk only if you don’t have access to the capital that you are saving by not paying it down quicker. Ie dumping your savings into real estate.

[@ngofam1302]

Pay it off. You won't regret it.

[@adamv6753]

Pay it off because it reduces risk in the event you cant cover and it opens up more opportunity later. My wife and I spent our first 1.5 years spending $100 a month that wasnt bills so we could pay off our 50k in student loans. Was well worth it.

[@Llkdd1987]

No risk no reward

[@phoenixocean8594]

​@@adamv6753$100 a month or a $100 a day lol

[@perezs245]

Fr he literally makes that in one week 😭

[@Lawlsforlawls]

@@adamv6753if you each put $100/m towards student loans for 1.5 years that only amounts to $3600, not $50k. You know what creates a financial emergency? Depleting $37k from an account to pay off a low interest loan due in 10 years.

[@Kaszubdak80]

"I use that car for driving around".... Ohh so thats what cars are used for 😂😂

[@markmcilrath9530]

Bet-David exposed Graham for being a Woke Winky..he don't have the stones to admit his own beliefs.

[@colincf3]

You can also deduct interest on student loans from your taxes so there’s an added benefit to keeping them if the rate is low.

[@Kiddflash02]

only up to a certain amount

[@m5roberts]

$2500 a year

[@MTGHedgefund]

Only if you make under like 80k. It's a nothing

[@itsmechrispy6083]

@@MTGHedgefund if you make over 80k more so six figures plus, in alot of fields you can do sneaky things to make it look like you make less then 80k

[@knights6239]

Bro felt that deep down to go after the boss man like that

[@alineviehweg]

These guys are awesome! It is nice to learn from other people and always have an open mind to understand where they comes from with their emotional financial decisions. We all choose to do something because we have experienced something.

[@derrekgillespie413]

Caleb is 100% correct here

[@cnh7262]

Depends the situation, he has the money to clear it anytime. A lot of people are screwed if they get in a bad spot and still have the payments.

[@tw8464]

​@cnh7262 exactly. He'd have to have way more than $35,000 to put into the S&P 500 and high income. But for most people if they get laid off and can't get another similar high paying job quickly the debt will hurt them much more. Another thing is the debt you have still when you're 75, you're not getting job income and income more fixed, but you might have had to use your investments to pay medical debt, yet you still have this student loan debt from long ago making life harder.

[@21cabbvge]

I also use my car for driving around, why can’t i deduct it?😂

[@shirtlesslager]

Create an LLC, title your car to that LLC, and keep defensible records.

[@robw9728]

And also have income in the LLC to deduct it against, and also don’t count the driving from your house to your office because that’s a personal commute. Home office doesn’t count. But yeah, start your own company and use your vehicle for business use and you can deduct it.

[@tw8464]

Everyone working for wages ought to be able to deduct our vehicles for commute and groceries etc. Just like a business. The "system" is corrupt only for "trickle down."

[@tw8464]

The "system" is set up to make most people wage slaves paying to work not getting properly paid to work. Most can't work without a vehicle. And we have to get groceries etc. or the corporations would have "employees" of skeletons. So indeed the working people are equal businesses despite what the "trickle down" controlled government pretends and ought to be able to easily deduct everything a business deducts.

[@natureofnow]

I love the honesty here.

[@ChiefGyk3D]

Today I learned I have less in college loans than Caleb HA!

[@LordAlderaan]

If I could borrow 40k long term at 4% I would do it tomorrow and invest in an S&P ETF or something exactly as he said.

[@willemthorbecke4045]

Well, if it was that easy everyone would do it but most people aren’t financially aware. Also most people will end up taking that money out to pay for things

[@LordAlderaan]

@@willemthorbecke4045 Exactly! Which is why undoubtedly financially it would be best to not pay off the 40k loan. With only a few specific exceptions (e.g. when it's a limit on taking out a morgage to buy a house).

[@Martyr217]

My student loan is about the same as Caleb and I just pay it off the same way as him.

[@Mavryck_Tha_Myghty]

… So your plan to pay it off is to not pay it off…

[@Jc_1654]

Lmao. The way Graham said “financially” is hilarious

[@YaNeK92]

In Australia your student loan automatically gets deducted from your salary tax if you're earning over a certain threshold. If you're unemployed it just sits there until you get a job again. You're free to pay contributions or even pay the whole thing off if you wanted to, however even if you don't, you're not actually getting a bill every month to pay any "minimum payment". In this case I totally agree with Caleb that it's much better to arbitrage that money, invest it properly and just let the loan pay itself off automatically from your taxes whilst you're focusing on your business and making big moves financially. 💯

[@ruthgarcia5982]

The difference between student loan debt and a car loan is that student loans have compound interest whereas a car loan has simple interest. Payoff those student loans because you are basically paying interest on interest. Look up the differences and know the types of loans you are carrying because they are not the same.

[@tw8464]

Exactly.

[@tw8464]

They'll be paying a lot of interest on interest just making minimum payments and letting the debt increase.

[@andrewsecola7150]

I completely agree with Caleb on this one. Paying off that debt won’t make you any money. If you invest that same money instead, then years later you could pay off those loans 20x over.

[@Alex-zi1nb]

Heck there's probably some sort of tax write off for paying off the student loans as well

[@zachjones2346]

Or I pay off my debt in 1-2 years and double my investment rate for the rest of my life and still come out way ahead

[@0niichad]

​@@zachjones2346yeah but you do come out farther ahead by paying minimums and investing

[@TheManlol12]

$37k is not bad. Its worse then 0. But you have 10 years on a student loan. It’s not comparable to most debts. Even talking about the same principles

[@Ab97121]

As someone choosing between an Accounting or Finance major this was a fun watch.

[@turdfurgason8476]

Getting a 10% plus return on investments and using time to compound is better than paying off low interest loans. Glad he isn't being emotional, and instead logical.

[@Masturbation65]

Until you're in the red lol

[@swicheroo1]

I have maybe 5-7K in debt from student loans. It was a Federal Loan--very low interest--and I'm not fazed by it. I could pay it off now. But it's better to have money to invest.

[@gabrielbuatois6951]

Where are you investing your money? I have dual Canadian and American citizenship living in Canada. Should I invest in S&P?

[@gauzl1266]

Its funny cause making minimum payment towards HECs in Australia, will result in your loan only growing because the minimum payment works out to be less than the indexation that is added to the loan every year.

[@XSTAYUPX]

Great advice

[@B.o.o.L]

Lmao “I can deduct the tesla because i drive it around”

[@notrealsmokey4249]

“I can deduct the Tesla because I drive it around” like what else is it gunna do just sit there and collect dust??

[@UnknownUser-tq6ru]

It's not just about the interest, it's about the minimum payment also. Once it's paid off, you can put the whole lot extra into investing.

[@TheChicagOP]

Orrr just use the money you have now from only paying minimums to have money invested longer

[@rstell589]

He’s saying to put the difference into investments the whole time to arbitrage some profit out of the situation

[@Jazz-gb9lp]

You gotta consider time value of money. His money will never be worth than what it is today

[@nick-rl1xt]

That’s the point…either way it’s going to take a long time to pay off. So why be super broke trying to pay it off fast when you could just pay the minimum and still live normal and have extra money to spend/invest

[@runswithraptors]

Boy no wonder the economy is such trash today if people use money like this 🥴🤡

[@Coastpsych_fi99]

Lol I’m the same as Caleb - I could pay my student debt in cash tomorrow but I prefer having my money liquid or earning me money in the stock market.

[@Teraclipse]

Please talk more about student loans

[@McMelly410]

I need to make more money

[@Iburn247]

Need to or want to?

[@McMelly410]

@@Iburn247 both

[@backflipsaresweet]

I'm with Caleb here, but I understand it's not for everyone. I think paying off a low interest student loan in full is actually really risky. There's a lot of speculation as to whether some amount of money may be forgiven and in the mean time the interest is tax deductible. I'd feel physically sick knowing I paid tens of thousands of a lump sum to student loans and there's a chance it's forgiven or you could put that money towards much better investments or a business

[@TheRustySparks]

Definitely true. Depends if it's a private loan or not. For instance mine is private and will never be forgiven. Also it's at double his rate 😅

[@mcearl8073]

I’m with Caleb on this one. The Dave Ramsey mindset is great for broke people, it doesn’t and shouldn’t apply to people with money. If you have money that’s making more money than the debt is costing you there’s no logical reason to pay it off.

[@cheekychipolata]

Good to know that Graham drives the Tesla, I assumed he was using it as the subject of watercolour painting.

[@timonix2]

I am paying the minimum on mine. But the interest for my loan is 0.19% not 19% not 1.9%, but 0.19%. That loan is going to stick around for my entire life

[@perillivolcomha]

How is this even possible lol

[@carknower]

@@perillivolcomhait’s not

[@deborahjackson6108]

How did you get that rate??

[@timonix2]

@@deborahjackson6108 government subsidies

[@Baconator1368]

why would anyone ever give out a loan with a 0.19% interest rate??

[@caseyleirer9677]

No offense to Graham, but I feel like Caleb’s advice has much more actual real world value

[@gm6892]

Graham helped me understand credit cards and making me rethink my financial situation. Him and jasprid (sp?) from minority mindset. However coming back to him after watching Caleb and others I thought the same thing which is weird because he helped me out in the first place lol

[@---cr8nw]

I disagree. Student loans shouldn't be treated the same as car loans and mortgages. No matter how badly your life takes a turn for the worst, you can't bankrupt your way out of student loans. They'll follow you to your grave. They'll garnish your wages, if you stop paying. So they shouldn't be used to arbitrage a spread. If you want to play the spread game, do it with a secured loan. Buy a new vehicle with a promotional interest rate. Worst case scenario, the bank takes the car and sells it to pay off most of your debt to them.

[@krad1314]

Almost like he’s giving advice to graham individually and not for the general population 😂

[@squigl3z78]

It's crazy how quickly he starts to sound liemt he very people he does this exact thing to lol

[@GeoffrytheButler]

The biggest thing is: Caleb has stated he's not sure how much longer KZbin is going to be viable for him (hopefully he's here for a LONG time because he's helped so many), but if that were me, I'd pay off any and all debts while I could. That way in the future I'm not possibly drowning in worse debt because I thought "Oh I'll have this income in the future!"

[@tw8464]

Exactly

[@citizen320]

Agree with my man in glasses. All cases are unique. Do what suits you. But with the right interest, minimum payments are the superior strategy.

[@Moonlight-do8gs]

U telling me this self made millionaire got a loan on a tesla ? 😂

[@Iburn247]

Yeah most times it's smart. Not thru the dealer tho so you get a good rate no 20% deals 😂

[@JayPrinceReacts]

Your obviously not the sharpest tool in the shed

[@B1gBossMan]

​@@JayPrinceReactswhy you do him like that ☠️. But to be honest, I would rather buy it cash than mortgage it if I were a millionaire. Or pay it off in a year

[@SV-kr9fu]

@@B1gBossMan : And you, obviously, have never heard of financial leveraging. Though, over leveraging is not good.

[@B1gBossMan]

@@SV-kr9fu yes I have heard of leverage. It may be said to be an advantage over a longer period of time. I know I can make '10% iN tHe S&p 5O0' but I would rather pay cash for little expenses like cars if I were a millionaire. I'm not stupid, it's personal preference.

[@sganet_]

Can’t believe he “use that car to drive around”. I just use mine as an extra storage. 🥴

[@Observer100-cn7gv]

It is people like him who have taxpayers paying back his student loan. Disgusting!

[@LibertarianPatriot]

Always pay off debt first. Become financially free

[@conorkamperman957]

Caleb mixes up risk and emotions 😂

[@ARedBear]

Caleb feeling what his guests feel😂

[@joep4224]

Mine weighs on me. I hate it and I'm regularly aware of it sitting there.

[@justinc.3385]

Nah, only reason to pay it off is if it effects you buying a home. These loan companies can wait for my money until the government eventually wipes it out.

[@shanep2760]

Do you honestly think the government is still going to forgive it? The Supreme Court has already proven that it's illegal for the president to do, and Congress will never pass that. 🤷

[@justinc.3385]

@@shanep2760 No, I don’t think so at all. I am not banking on it bc the government isn’t for the people.. but if they would eventually then at least i’ll benefit off of it while taking the money I have to throw at it and making more.

[@gsdblack1]

They won't wipe it out because that debt is an asset to someone else. Think mortgage back securities/the big short.

[@BooskiD]

@@shanep2760depends the degree actually of it’s something that helps people like medical government and just alot of the things that helps the community it will be forgiven after so many years. It is a lot but I just seen someone get their debt forgave bc they are a nurse.

[@nickc3934]

@@gsdblack1doesn’t stop banks from doing that to this day, and we wonder why our gdp has exploded this past year… We already are shorting ourselves.

[@dannyklaas9311]

"i use that car for driving around"... no way 🤯

[@nyleo04]

I think he got cut off and was about to maybe talk about driving it around to realty showings or something for work

[@RonaldRyanj]

Happy to see him on the other side, wished Mr. Graham went in harder on him how he goes in on all his guests 😂

[@kevinhernandez4830]

I took on 53k debt to become an A&P mechanic to work for the airlines and fix their planes. Let’s just say I was able to pay it off relatively quick..

[@ZeginMakesMusic]

You can't deduct your car just because you use it for driving around..... Everyone uses their car to drive around

[@user-ex2yt1pl6u]

Bullshit! Caleb would not entertain the same line of thought from his guests, but here he is, trivialising his debt.

[@nyleo04]

Interesting to see two different view points

[@Mama_eats]

THIS! So often I hear advisors recommend paying all debt all the way off “unless it’s a house” and only recommend the snowball method. If it weighs on you, or you need those small wins, absolutely. But there are some of us out here who are robots lol. I tried the snowball method and regretted not doing the mathematically best approach. If I were to buy a house in this market the interest would be higher than that of any of my student loans. Those same dollars will work harder in the stock market than paying off loans, and I’m happy to take advantage of that. The options should be presented as such. There’s the best way mathematically, and the best way to trick your brain. Do what works best for you! Any win is a win

[@man-observing-world]

34k in debt, “I feel nothing.”🤕

[@cockysoul]

THANK YOU! I love graham! He is one of the best. Caleb should take his own advice!

[@jeffsperla3972]

Exactly. Its a small tax who cares, invest that money and watch it grow

[@ofsoundmind143]

Between me and the spouse we have $160k in student loans. In our late 40s… we’re so screwed

[@stevejjon2010]

Student loans are so cruel. The USA needs to stop College's/Universities from charging like a wounded bull. In other countries students don't have that burden.

[@DRJoe100]

You could always work full time and not take me out or only use them for a degree that can get them paid off in 2-3yrs… a science degree.

[@mikolowiskamikolowiska4993]

In other countries if you can't Pay cash you don't go to college

[@BooskiD]

@@mikolowiskamikolowiska4993not actually true. And when they do pay it’s at a fraction of the rate.

[@NaturesBetter]

Right, and cannabis should be free also.

[@nickc3934]

@@user-bb4xk6bb7nxxxperhaps we should automate a lot more jobs and force those people to search for new work after they spent decades doing it. That way everyone has to hyper specialize in a job field. You see now that removing “useless degrees” will also affect those without degrees?

[@sergioreyes6296]

Paying it off is a stupid decision. Just put the money into a treasury yield. It yields higher than the interest rate. At the end of the day finance is just math. The emotional decision of paying it off so as to “not having it weigh over you” is exactly why so many people stay poor: making financial decisions to appease what feels good v.s. What makes mathematical sense.

[@kirbynichols265]

My hubby and I had this same discussion over his student debt. It weighed on him emotionally but I helped him see the logic of being able to invest the money now. We agreed that we could revisit the issue at any time and he slowly got more and more comfortable as he saw our investments growing.

[@jacobg8640]

While the stock market will likely beat those rates in the long term, most loan terms are 10 years which in my opinion is too short term to reliably get much of a return at all. When I consider that my arbitrage margin is only likely at best 2-4% if things go right and I have more to lose than gain, it didn't make sense to keep. The only loan I kept has a low rate that lets me break even with my HYSA. It is more for the benefit of my score because it is my oldest credit account. The only other scenario I could recommend is if you are buying a home. At these rates you are better paying that first.

[@HashPhantom]

Get Dave on the phone

[@chinaberg]

Dave deals with emotion. Caleb deals with numbers.

[@blazer6576]

The clownery in this video is unreal

[@carriew5106]

I am so grateful that my student loan wasn't even included in my mortgage calculation (in the UK).

[@tristanpegnottga2002]

I agree with caleb if it doesn’t charge interest dont pay it immediately focus on anything charging or earning you interest

[@lucascarman2578]

Rich people talking about 37k in debt so obnoxious. He's deciding whether to just pay it off or to invest the money instead while most people have absolutely no choice.

[@dsp4392]

It's a finance channel. It's unproductive to be jealous of their wealth. They're rich regardless. It's better to know how the rich got rich and stay rich, and hopefully be able to pick up on that knowledge, than for them to keep it to themselves and leave the poorer people in misery. They're not better people. They just have more money.

[@nick1177]

Many people have that choice especially since we're talking about COLLEGE debt.

[@chasedavidson2855]

Listening to the guy graham's talking to emotionally weighs on me

[@yumatom]

Tax deductible interest and there is the ever looming specter of forgiveness.

[@EvolutionAutocrosser]

I agree. Pay back cheap money over the longest time possible. Your payment even gets cheaper as the dollar devalues.

[@fonzieog5072]

Don’t pay attention to the tik tok guy. I also had 38k worth of debt. Before Covid started I left it at 20k. Then right before the interest rates resumed again I paid off the 20k at once with my emergency fund. I have never felt so proud to be a zero dollar man. Now all the debt I have is medical debt which is I think less than 5k? But I have 11k in savings so I feel fine. I’m still learning about collections and how that affects my credit score but there is no due date on these so idk. We’ll see what happens, I have the money for it so if I have to pay it I will, but I guess it’s not urgent

[@rich355]

Congratulations man 🎉. How long did it take you to pay off your loans from Graduation till recently?

[@Pr0xeNx]

imagine being proud to be zero dollar man where do we live

[@YokubouTenshi]

That's the difference between accounting and financing side. The accountant sees the returns as is, the finance officers sees the risk adjusted returns. The fact that Caleb isn't using the risk free rate he has access to shows that he's an accountant.

[@I_Like_Turtles441]

For h those who’re wondering about the last dialogue. Graham can declare his car as a business expense since he drives it a lot probably from property to property. And you know about the business expenses you can deduct your taxes for it. So in fact he’s not a hypocrite since he’ll lose that money anyways he just used it on his car so it doesn’t count. As compared to student debt huge difference.

[@ShaggzVB]

I don't think you can claim a car for going between investment properties? Maybe if he used it in youtube videos

[@Masturbation65]

​@@ShaggzVBNobody on the internet knows how business expenses work

[@robw9728]

It would be prorata with personal use.

[@michaeleaster8354]

I got a decent job out of college, and wiping out that debt quickly is one of the smartest things I've done. Let's be real, if that money didn't go go those loans, it wouldn't have gone to investments. Now I'm a millennial with a house

[@JhamEntertainment]

Bro that’s crazy. I use my car just for driving around too! What are the chances man