Paying down debt vs. investing: which should you do?
When you’re bogged down by debt, whether it’s credit cards, loans, or some combination of both, setting aside money to invest can be challenging. It can also feel somewhat counterproductive investing if you’re burdened by a significant amount of high-interest debt.
With household debt in the United States skyrocketing to $17.8 trillion in the second quarter of 2024—up from $17.06 trillion in the second quarter of 2023—more than a few people are likely to be facing this dilemma. Does it make more sense to focus on eliminating debt or investing? And under what circumstances should you try and do both at the same time? The answer to those questions won’t be the same for everyone.
