Should I pay down debt, or start investing? #investing #debt

One of the most common questions I get is…
Should I pay down debt, or start investing?
It really depends on a few key things.
First, what’s the interest rate on your debt?
If you’ve got things like buy now, pay later or a car loan sitting around 15–17%… that’s very high.
In most cases, you’re better off paying that down first, because it’s likely costing you more than you’d earn investing.
But if your debt is lower, say 4 - 5% like a HECS debt or even a home loan… that’s where it becomes a bit more balanced.
Because over the long term, investments might return 9–10%, so you’re potentially coming out ahead by investing.
The other piece people don’t talk about enough is how you feel about debt.
You might have low-rate debt, but if it’s sitting in the back of your mind and stressing you out… paying it off might be the right move for you.
There’s no one-size-fits-all answer.
It’s about the numbers, but also what gives you clarity and confidence.
General advice only.
Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).

#personalfinance #moneytips #financialdecisions #moneystrategy #smartmoney #financialplanning #wealthbuilding