Updated about 6 years ago on . Most recent reply
Financial future for myself
A. Should I pay off all my debt and be debt free car note small student loan credit card etc.
B. Should I buy another property and keep all my debt and just make the payments ?
What should I do to be smart I do want another property but being debt free is something to consider ??
Most Popular Reply
@Jermell Shavers Paying down debt at a give percentage rates; let's say 6% car loan, has the same affect on your net worth as investing that money at 6%.
Based on the straight math often investing in a new property would be more profitable than paying down debt. However that is the riskier way to go. It does not take into account what happens if that new investment doesn't pay off like you expect it to.
It also doesn't take into account your personal financial self discipline. It is easy to fool yourself into thinking you are borrowing your way to wealth.