If you’re trying to decide to get out of debt or invest, there are a few things you have to consider. But, we almost always recommend that you should focus on getting out of debt before you invest. But here’s a few things to think about.
When to Pay Down Debt:
- If your debt’s interest rate is 6% or more, it’s like snagging a sweet deal.
- Focus on paying off that debt first before splurging on other stuff.
When to Invest:
- If your debt’s interest rate is less than 6%, investing in something that yields higher than 6% might be beneficial.
Why the 6% Rule?
- It’s like a magic number that helps you decide.
- But first, make sure you’ve sorted out other important money stuff, like having emergency savings and clearing off any high-interest debt.
