If you are trying to get rid of debt, what would be the best solution for you?
July 20th, 2010 | by admin |If you are trying to get rid of debt, what would be the best solution for you?
What would you do?
Use the money to focus on Getting rid of liability or start focusing on building an asset that will generate income so that you can pay off your loans and liabilities?
Which will be your priority and why?
4 Responses to “If you are trying to get rid of debt, what would be the best solution for you?”
By David M on Jul 20, 2010 | Reply
Definitely pay down debt first. The interest rate on your debt at best is probably 4.5% and at worst 18%+. And your savings interest rate? If you can find a bank paying more than 1.5% interest (other than an introductory rate) please let me know. Paying down high interest rate debt is the best investment one can make today.
By Katy M on Jul 20, 2010 | Reply
I would pay down my debt, because I wouldn’t want interest to keep accumulating.
By do on Jul 20, 2010 | Reply
pay off the debt. if the asset would generate more money than the debt, you could (in theory) take on millions upon millions of dollars in debt to generate an exponential amount of wealth.
By Sudhakar on Jul 20, 2010 | Reply
It depends upon the fact that how old the debt is? Is there any immediate pressure on you for repayment.If the repayment can be postponed until such time your asset to be build can generate means for repayment.