|
| There are too many external factors for me to want to pay off term debt that is low interest even if it looks good on paper now. With all the money flowing into the economy combined with low interest rates, we are setting ourselves up for inflation. Inflations inevitably causes much higher interest rates. My dad started farming with 15% plus percent operating notes. Many now don't realize how lucky we are. Lending can and will tighten. Extra cash in hand to cover operating costs, emergencies and to take advantage of random good opportunities is my primary goal in the economy. There is no guarantee that if you need money down the road, the bank will be willing to fork it out at terms that are acceptable to you. Just because lending standards are low today, they may not stay that way.
None of us have a crystal ball and know what is coming. However having cash in hand and fixed loans at least you have two things guaranteed. | |
|
To get clear out of debt or not.
