Should I pay Kubota Credit Corp off or make payments?

[hawkeye08]

JOHNTHOMAS, you are fortunate and hard working. You have worked hard to make your investments pay. If I was to try and define debt free for you (after reading all the posts), I would say your personal residence and personal car paid for. The large debt you took on I would consider a business and I don't know many businesses that are debt free if they are growing and making money. They use the cash to leverage bigger things, just like you did. You also understand that not everyone has the time (many have full time jobs that take 50-60 hrs per week) to work the investments.

You have indicated that you have positive cash flow, many folks do not, they have to be very careful or they get upside down. Since your steady income (not really subject to economy downturns or layoffs) covers your bills, keep on keeping on... do what you want to do, if you can make more money with your profits than by paying off the house, then go do it... no worries. Too many times folks are paying mortgage interest for the tax break but the money they could have used to pay off the house is not making anything so they keep paying interest to get the tax break. If you have to pay $10 in interest to save $3 in taxes, you are giving away the $7 difference. You've done the math and understand how to leverage cash.

 

[indianaEPH]

Assuming there are no other cash flow issues in your life, pay off the loan with the higest effective interest rate. By effective, you will need to consider the tax deduction when looking at paying of the mortgage rate. THe kubota's are at 0% so pay these off last (actually the interest was paid up front when you bought them so that cost is sunk).

Debt is many times nessasary to move forward with your life and business but contrary to what others have said being debt free is awsome!