Pay Off Debt, Invest, or Both? How to Make the Right Financial Choice!

Consider a way to increase your earnings by combining debt repayment with investment

Lorna Harvey
Bouncin’ and Behavin’ Blogs

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Image by the author via Canva

Many people are carrying a lot of debt these days and are probably struggling to pay it off while still building a nest egg.

If you're faced with this choice, you may wonder if you can make more money by combining investment and debt repayment.

Thankfully, there’s a middle ground where you may reduce your debt and make wise investments to boost your income simultaneously.

Investing rather than paying off debt can occasionally be a more economical choice. If the returns on your investments exceed the interest on your debt, your money would be better off invested in higher-yielding ventures.

To assist you in identifying the most profitable choices for your particular circumstance, let’s examine a few alternative scenarios:

1. When it Makes More Sense To Invest. You may have student loan debt or a mortgage with a fixed interest rate each month. Your choice to invest or settle the debt may depend on whether the interest on these loans is tax deductible.

If your debt's monthly expense is less than what you could make from lucrative investments, it is ideal for you to concentrate on investing.

2. Accept Gratuitous Payments. If you work for a company offering a retirement…

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Lorna Harvey
Bouncin’ and Behavin’ Blogs

I’m a blogger, writer, and interested in helping people find answers for living their best life. I also write on https://www.createthebestlife.com/.