[quote=ninaprincess]Some people advised us against this because we would lose the tax advantage but I think we are not discipline enough to not spend the money if it is sitting in the bank. I rather have my money in the house or 401k.[/quote]
I don’t understand the tax advantage statement because you have to pay extra interest to get a partial tax return. But it is mathematically proven that having some kind of debt can increase your overall financial returns. However, the key is the debt level has to be “optimal” such that you can repay them safely. And any income is not passive is probably not very safe.
