Should You Pay-Off Your Debts First or Invest in the Stock Market?

CreditCard

One common question the comes up when you are thinking of investing in the stock market is, should you pay-off your debts first or do I go ahead and start investing in the stock market already?

If you have outstanding loans or credit card balances, it is advisable to pay-off those debts first before starting to invest in the stock market.  The average finance charge or interest rate on credit cards is about 3.5% monthly and as long as you are paying only the minimum required amount, your credit card balance doesn’t go lower.

So pay off whatever debts you have first, start clean, then you can focus on investing in the stock market and realizing the full potential of your investments.

 

 

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