Before anything..first get out of debt??

Question

Out of debt first before investing in property or both at same time?? Help

Account Closed · Answer

Need more info!

Thomas S. · Answer

Being in debt may show a lack of financial aptitude. First clearing all your debt is good training for saving to invest. Staying out of bad debt is essential to successful investing.

Joe Villeneuve · Answer

Is the plan to use the profits from REI to get you out of debt?

Bill F. · Answer

@William McDonough

Are you asking a general question or do you have a specific situation in mind?

The type and magnitude matters a lot.

A $250k mortgage at 3.5%. Hell no!

$23k in credit card debt at 21%. YES!

$44k in student loan debt at 9%. Maybe, depends on a lot of things, like your income, location, what what of RE you want to invest in... ect

Daray Olaleye · Answer

@William McDonough It depends, everyone's situation is different. Without insight on your financial situation or your goals, it's a toss up. Find a professional and/or do what you believe is in alignment with your short/mid and long term goals. The right answer is not always going to be the glaring financially correct decision.

Zach Cummins · Answer

Ah the four letter word DEBT! Assuming you don't currently have any investment properties, it would probably make more sense to get your financials in order. Making sure you are at least current on all of your debts. If you have student loans, understanding that worst case scenario of bankruptcy, student loans are not bankrupt able.. So pay the minimums at least. Credit cards- You should owe less than 1/4th of what you can borrow and be paying the minimum payments with a plan to get out of debt. Assuming you may need credit cards for future investment properties, be best to pay them off before you get started. Also try to increase your credit card limit will short term increase your credit score (as long as you don't go deeper into debt) I suggest looking up Credit Karma to help you with ways to boost your credit its a free app. Car loans, get those suckers paid off! Nothing worse than owning something that continues to depreciate in value... These are the little things you can do.

Truly best way to get out of debt, I would suggest looking at Dave Ramsey baby steps. DaveRamsey.com Get out of debt and get you set up to build wealth long term! If you have more questions about his methods feel free to DM me anytime!

Happy investing!

Before anything..first get out of debt??

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