Dear community,
It bothers me that I cant grasp a seemingly fundamental thing, which is, that under strong inflation having or making debt is good. So maybe it helps if I tell you quickly my situation:
- My wife and me make around 250k a year, being engineers
- We bought a place for 700k two years ago and still have around 400k in debt to pay
Now our goal was always to pay off the remaining 400k asap, so I have this ballast off my shoulder and we could be done in 6 years max. Then, being debt free I figured I could live more freely, investing the then higher savings (from not paying the mortgage anymore) into whatever. But mostly not being under the pressure of having debt.
I have issues, while understanding the theory, to see the positive in practice. I „feel“ that my grocery bill is now 10% higher than months ago because of inflation . I feel that in my wallet that I have to pay more for the same. That’s negative.
But I don’t „feel“ the positive impact on inflation on having debt. I know(or maybe I don’t) that debt must be worth less under inflation. But I cant recognise this.
I was advised to not pay off the debt asap because of inflation, I just don’t seem to get it. To be fair, as an engineer, economics was not part of my classes.
I‘d appreciate your time to help me. What should I do? Keep the debt longer and make even more debt (in order to do what?
Thank you!
Submitted May 16, 2022 at 06:49AM by Many-Coach6987 https://ift.tt/aSQBN8K
