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You should only invest if you can earn a higher after-tax return on your investments than the after-tax interest rate expense on your debt. Otherwise, you should pay down your balance. See also article from about.com below that gives a few scenarios with hypothetical amounts and rates plugged in.
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How does debt limit your investment options?
You have to pay off your debt before you can invest! Or you can't invest as much because of the debt.
How can I use a debt ratio calculator to estimate my finances and investments?
A debt ratio calculator is a great tool to use to figure out how much you should save and how much you should invest. If you have a lot of debt, you should pay that off first.
Can you use your Stafford student loan to pay off debt?
No, you cannot use a Stafford student loan to pay off personal debt. The only debt that should be paid off with an educational Stafford loan is your college debt.
How could a college student begin to invest money?
You can begin by not incurring debt, stay away from credit cards unless it's an emergency and you can pay it off right away. Invest in capital investments.
With a large sum of money, is it better to pay off a house or invest the money?
If you pay off the house early, then you avoid loads of interest and can sell if you like. This is an investment in itself. Given the choice, you should always pay off your loans before you invest in anything.
Should you pay off your debt before you refinance?
du yeah who asks that
Can a family member buy the house that is in a reverse mortgage?
Only if they pay off the outstanding debt owed on the mortgageOnly if they pay off the outstanding debt owed on the mortgageOnly if they pay off the outstanding debt owed on the mortgageOnly if they pay off the outstanding debt owed on the mortgage
How do I pay off my debt efficiently?
In order to pay off your debt more quickly you should pay more than the minimum payments. Use a budget to make sure you have a spending plan. Make repayment a priority!
What steps should you take to become debt free?
You can start by setting a budget and then using the snowball debt payment plan to pay off your debt.
How can you keep a collection agency from taking your car?
Pay off your debt.Pay off your debt.Pay off your debt.Pay off your debt.
Is it better to immediately pay debts or to invest?
Pay off your debts!
What is internal charge off?
A bank or a loan company can "charge off" a small amount of debt to get the amount off their books. However, this will affect a person's credit report. And it does not mean the person does not have to pay the debt. A debtor should still work to pay off the charge off, to clear the debt and save their credit rating.
