VIDEO: Should You Invest or Pay Off Debt?

4 Comments

I’m basically answering the most popular question of all time:

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Should You Invest or Pay Off Debt? 


4 Comments

  1. Giovina

    You’re right that it comes down to individual circumstances.. I wanted to be debt free more than anything else, so after I graduated I cashed out my investments and applied that to my debt, and only kept a small emergency fund while I threw every available dollar I had on my debt. It ended up being worth it to me, since those funds were flat if not down last year, and I ended up paying only $1,400 in interest on my $33,000 student loan. When my loan balance was about the same as my savings, I used that too, leaving me with only $100, which in retrospect was a bit risky, but so worth it to see that $0.00 owing on the NSLSC site. Now I’m building up a safe cushion again and knowing that all my money is all mine is the best feeling! As soon as I have a bit more saved I’ll start investing, but I have found it harder to save as much as I put on my debt, since now I feel like I can loosen up my spending a little and treat myself after all that hard work.

  2. Pay off your debt; debt is always something that follows you like a shadow. Plus there is interest so you can save more money by paying it off now than later. Once you have no more debt you will have so much more room to invest and grow your wealth. Good luck with your decision!

  3. Hey Bridget, I like what you said about the habit of saving being important – even if you don’t have a lot to put aside especially when you’re paying off debt. I’ve always had an easier time paying bills than saving money. Acknowledging that choice to save can be hard is important. Thanks for the video!

  4. Alyssa

    Great read. Thanks very much. The invest versus pay debt dilemma is something my partner and I regularly debate and discuss. I agree that it’s important to get the debt below 20,000 so that you’re not throwing money away on interest payments. A key seems to be to maintain the frugal habits when you’re out of debt so you can build your wealth while you’re in the green!

    Thanks