03-14-2015, 01:38 PM
To me this question is about risk management. Sure the high interest debt like credit cards etc has to be paid off, that much is obvious. But with mortgages and other loans where the interest rates fall under 5% then it's a tough call. Can't really talk from personal experience as I have 0 debt at the moment.
But if you have good job security and a nice little cash buffer in case something bad happens such as your car breaks down, then I think it's a good idea to invest part of the money. You will still want to get rid of the debt, at least most of it, at some point but with the low interest rates we have nowadays I really don't see a reason to hurry with it.
But if you have good job security and a nice little cash buffer in case something bad happens such as your car breaks down, then I think it's a good idea to invest part of the money. You will still want to get rid of the debt, at least most of it, at some point but with the low interest rates we have nowadays I really don't see a reason to hurry with it.