Should I pay Kubota Credit Corp off or make payments?

[jdonovan]

It still amazes me than anyone does business with establishments like that.

You don't have a lot of choice when your mortgage is resold.

 

[dstig1]

Wow. Interesting that nobody asked anything about your cash flow position. A lot depends on your monthly income from other sources, if any. It sounds like you are retired on a pension, so the first question is, "Can you meet all those monthly loan obligations with your monthly income." If not, then you need to look at using that cash to pay off some or all of the loans you discussed or sell some of those assets if no longer needed, like it sounds (getting out of the business). If you need those tools and can cover the nut, so to speak, then the question becomes one of "how sure are you it will stay that way?" The next question would be if you are happy and stable "What do you WANT to do?"

For the most part, the answer lies within. For this, many financial advisers are paid a King's ransom. Go figger.

 

[JOHNTHOMAS]

My equity from the sale can pay all of my debts or almost all since a big chunk will have to go toward Federal taxes. I have three government backed retirement checks, SS, State Retirement and State Teachers Retirement. SS will pay all of my current monthly payments which are only Home, Cars and Kubota. I Wll pay the car/truck off which leaves the home and Kubotas monthly payment. My bigger check is from my State Retirement which is fairly substantial which I use to pay my daily expenses and charitable contributions. I don't do savings or haven't been since I've been building my business and owning some Real Estate to be my savings.
I do Christian Based Family/Marriage/Personal Counseling (I'm a Retired Counselor previously paid by the Gvmnt where my Retirement was Funded) and I do that now and will continue doing it. Will have more time for Counseling for which I accept no payment, tell Clients to donate to their Church or Christian cause or Salvation Army.
I've always traveled alot and still do every few months. Have 5 timeshares paid for to help with my traveling and always pay for everything with a credit card which gives points for free motel stays at Choice Hotels and another credit card which pays 5% per dollar toward GM purchases which I use to get the max allowed per year of $750 then switch to the Choice card. Pay all cards off each month.
Sort of posted this to see how many people would say to pay off a 0% interest loan and maybe they would say why.
I know as a Counselor that some should because that monthly payment coming due, even though they have the money in a savings account or checking account or where ever they have it stored/hidden will be a thorn in their flesh even though rationally they will know to not pay it off. That thorn has a monetary value to them and that value/cost is what they will lose from doing something productive with that money over that period of time. There are also those that know they will spend it foolishly and then not have the payment when it comes due. To themselves they are true. I'm not saying paying it off is wrong but monetarily it is wrong to pay it off but psychologically it could be extremely important for some to pay it off.
I happen to be one of those individuals that the monthly payment coming due will be on my mind but it won't bother me. I know I have the money to pay that bill or rather the money will be in the checking account where Kubota is going to extract their payment each month without even a phone call. I also feel secure enough to know I'll not spend it foolishly since I have other income to do that with (spend foolishly). I also believe I can use that money to make more money over that time when and if a money making opportunity comes up.
I have basically had two careers during my working life (Auditor/Real Estate Broker, RE Investor, RE/Marketing Professor) and Counselor/Administrator (main guaranteed paid job for the Gvmnt) and fairly well enjoyed them both. I have had careers in Business and Psychology and have many years of Education and work experience in both. I've been fairly well successful in the Business side (jobs) but my heart and main interest has been in Counseling. With these two careers running parallel in my life I can understand and accept that there can be several different answers for my question and all the different answers can be right for some specific individuals considering their perspective and life experiences.

 

[rickster]

theres nothing more rewarding than being debt free

I have to agree with this! Debt FREE is the best feeling in the world :thumbsup:

 

[BX25Bota4me]

Pay your house off. If you want to pay off the equipment, pay all but the last payment and keep the insurance as long as possible. Don't spend the money on anything else nor put it at risk till you are debt free. Debt free is the only place to be. For those that do not agree, you have never been debt free. Look at our national debt, borrowing and being in debt always makes you do things you would otherwise never due. Get debt free and stay there. Stop drinking the cool aid.

 

[rkeith]

The cash? Keep it. Invest it. Put it to work in a safe instrument of some kind, my friend. Take the dividend on that investment over the long term. Best regards and stay healthy and may the Good Lord bless you.

Buy more rental property and build wealth!!!

 

[JOHNTHOMAS]

I have to agree with this! Debt FREE is the best feeling in the world :thumbsup:

Pay your house off. If you want to pay off the equipment, pay all but the last payment and keep the insurance as long as possible. Don't spend the money on anything else nor put it at risk till you are debt free. Debt free is the only place to be. For those that do not agree, you have never been debt free. Look at our national debt, borrowing and being in debt always makes you do things you would otherwise never due. Get debt free and stay there. Stop drinking the cool aid.

Been debt free and it ain't all it's cracked up to be. If I had followed you guys advise 5 years ago, I'd have about $175,000 less money now. How do you think I bought a half million dollar piece of property. With my SS and Gvmnt retirement check?
I agree that some people can't handle debt and some people can't handle money. I've been handleing both fairly well for years. Most people can't buy a home without a loan and for someone to not buy a home is or was in the past not the wisest move. Home ownership is big to me and now tractor ownership and vehicles ownership are important. I buy em' , borrow money then pay the money off. Not hard or complex or it hasn't been for over 50 years. Bought my first drill on credit when I was 14 (1961) so I could establish good credit. Paid it off and been borrowing every since and paying it off every since.

 

[beppington]

Been debt free and it ain't all it's cracked up to be.

IMO ... it's MORE than all it's cracked up to be! :thumbsup: :confused3:

If I had followed you guys advise 5 years ago, I'd have about $175,000 less money now.

Could you explain this? If being in debt will gain me money, I'll highly consider converting :thumbsup: Are you saying you borrowed $180K-$200K & dumped it all in the stock market on March 9, 2009? (which was the Dow's lowest close since who knows when (6,547.05) & has nearly doubled since then (12,756.96 close today))

 

[JOHNTHOMAS]

IMO ... it's MORE than all it's cracked up to be! :thumbsup: :confused3:



Could you explain this? If being in debt will gain me money, I'll highly consider converting :thumbsup: Are you saying you borrowed $180K-$200K & dumped it all in the stock market on March 9, 2009? (which was the Dow's lowest close since who knows when (6,547.05) & has nearly doubled since then (12,756.96 close today))

I'm saying I bought something for $500000 and now selling for $525000 and owe $350000. Pay off the $350000 from the $525000 and have $175000 that I wouldn't have if I had not went into debt, if I decide to close deal. May wait to make more later by being in debt. Don't do stock market. Do self control of money. I've bought Real Estate many times and borrowed money or had debt for the Real Estate and sold it later for double which there would have been no money made without debt.

 

[beppington]

I'm saying I bought something for $500000 and now selling for $525000 and owe $350000. Pay off the $350000 from the $525000 and have $175000 that I wouldn't have if I had not went into debt, if I decide to close deal. May wait to make more later by being in debt. Don't do stock market. Do self control of money. I've bought Real Estate many times and borrowed money or had debt for the Real Estate and sold it later for double which there would have been no money made without debt.

You say you bought it for $500,000 & are now selling it for $525,000 ... isn't that a $25,000 profit? What am I missing?