Are You Investing with Borrowed Money?

One of the questions that usually comes up when talking about how fast to pay off student loans is “Well, shouldn’t I invest my money rather than pay extra on my debt? It will grow at a rate in excess of the interest I am paying on my loans”.

The wise answer to the question is NO. You should pay the debt off as fast as possible THEN start saving and investing. Getting out of debt is remarkably freeing. It creates financial strength. It demonstrates you have the discipline to make decisions in life that fit within your financial means.

Here is an article titled Should You Borrow Student Loan Money to Invest. Read it and see if you generally agree with his answer.


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