Should you Pay down Devt or Invest more

Should you pay down debt or invest more? Well, it depends on your situation. Personally, I would invest rather than pay down debt. Your investment can always pay off your debt. If you choose to invest instead paying down debt there are many reasons to invest such as building your investment portfolio, doubling your money, securing a financial future, letting debt fall off your credit and etc.

Building your investment portfolio

Building your investment portfolio enables you to make money passively while you continue with your 9-5. When investing you should start with stock because they are easy to liquidate. Liquidity is important when deciding to invest or pay down debt. If you choose to buy a house and your are forced to pay a mortgage with no tenant you incur a new expense. Houses are hard to liquid plus it requires you to have a good credit score.

Doubling your money

When investing instead of paying down debt you can potentially double your money or make more depending where you invest. My personal favorite is penny stocks. I like penny stocks because you will see a return on your investment faster than regular stocks. Most regular stocks yield a return of about 8%, whereas penny stocks can 50% and above. When you earn it is important to reinvest to the point where your returns serve as supplemental income.

Securing a financial future

When you invest you are securing your financial future. Most people try to pay down debt instead. Paying down debt is fine if it is manageable. I.E If you owe a past cell phone of $400 and getting it off your account improves your credit rating then you should pay it off. I.E If paying off the revolving debt free a lot money on your monthly expenses then paying down debt should be priority.

Letting debt fall off your credit

Some people let certain debt fall off their credit report. I am not advising to take this route for legal reasons. There are circumstances which occur where you could not pay off the debt in time. It takes approximately 7years for certain debts to fall off your credit report.

Choosing to invest over paying down debt is usually the better decision if you know what you are doing. If you have questions you should seek professional advice. Securing your financial future should not be taken lightly. Good luck!