Not exact matches
Last, companies with high cash balances can also
return money to you directly
by paying off debt, and thus increasing profits; buying back outstanding shares; and even
paying a dividend.
Mr Manos said on Wednesday he would not block a bid
by a company related to L Capital to take full control of Jones the Grocer's Australian operations in
return for
paying off the entity's
debt to external creditors.
With our mortgage being the lowest interest rate we are
paying, any extra funds we have will get a better
return by first
paying off more expensive
debt.
While
paying off a mortgage early can be a good option for some people, a lot of people can save some money and get a better
return on their investment
by refinancing their home mortgage and / or using the mortgage to consolidate
debt.
By paying off high interest
debt, you'll get an instant
return on your money.
Theoretically, you can increase your wealth more quickly
by investing it in the stock market at a 10 - 11 % rate of
return than you can
paying off your
debt (at a ~ 6 % rate of
return).
One of the best reasons not to
pay off debt early is if you can get a better
return by investing that money in the stock market.
There may be other wrinkles involved - for example, some of your creditors may be willing to write
off part of your
debt in
return for an immediate payoff - but the key thing is that you're simplifying your finances
by exchanging many smaller
debt obligations for a single bill to be
paid every month.
By paying off debt, you know exactly what the
return on your investment will be (assuming a fixed - rate
debt).
Dividend payout ratio is the method
by which you can know what portion of net income a company is
returning to its shareholders, and how much retaining for growth,
debt pay off and cash reserve.
If you believe that an investment will
return less than the interest on a
debt, then
by all means
pay off the
debt.
If you owe any money, especially if you owe money to the IRS, you can improve your tax
return by paying off any outstanding
debts you have to the IRS.
Also,
by wiping out your
debt (including mortgage) early on, you are effectively investing in some guaranteed bonds:
paying off a 5 % mortgage guarantees you a 5 %
return forever *.
She's been there a few years so she'd have tax
returns, and her credit isn't great but it can be boosted pretty easily
by paying off her $ 300 credit card
debt.