ST Alpha - "what you're describing seems to be to be a distinction without a difference." (Reading a Post)

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In response to "I will attempt (but please someone correct if I get it wrong)." by loosilu

what you're describing seems to be to be a distinction without a difference.

Posted by znufrii Jul 1 '09, 14:18

assuming the same starting situation, of say $5000 in debt at 10% APR:

if, in a given year, I put $1000 towards paying down debt, I've reduced my negative cash flow accordingly

if instead, I invest it for a 10% return, I've increased my positive cash flow, but still have the negative cash flow from the debt I started out with, for the same net effect.

Responses:

yikes. Well, - loosilu Jul 1, 14:18 5
- what, exactly, am I missing? -- nm - znufrii Jul 1, 14:22 4
  - in one you gain, in the other you lose. - loosilu Jul 1, 14:23 3
    - So, I'm losing money by paying down debt? -- nm - znufrii Jul 1, 14:29 2
      - no. - loosilu Jul 1, 14:31 1
        
        but that was assumed - znufrii Jul 1, 14:40

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what you're describing seems to be to be a distinction without a difference.

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