Debt or Invest?

Hi All,

I am hoping someone here can help me make up my mind!

I owe $17k on car loan and I have been making extra payments to get this paid off as soon as possible. My plan was, to pay the loan then save up around $150k over the next 2 years then move to New Zealand and buy a house to live in.

However I am now wondering if this is the best idea. I'm about to be promoted and I will have a car allowance as part of my salary as getting around is part of the job. I don't know the details yet on how much I will actually get etc but I understand there are some tax benefits associated with this. So is it best to save the money, invest overseas as soon as possible and rent the property out and continue to pay the car loan at the mimimum rate?

I'm confused! Can someone please give me some advice?

Thanks in advance

 

Hi Katie

If you can save $75K a year, then surely your car loan can be payed off swiftly. Only if you can find an investment that pays higher interest than your loan, should you slow your repayments to a minimum.





Johny.