If you have debt to pay off, there will come a time when you need to answer the following question – pay off debt or invest? William Cowie, writing for Get Rich Slowly, identifies the reasons given for each of the two options. For investing, there is the power of compound interest and the time of year working in your favor. Paying off debt may reward an individual with peace of mind and provide for better protection against any “worse case” scenarios.
Ultimately, it has been determined that it is best to observe all your options and choose the best for your own specific situation. There is no “one size fits all” answer to this question. However, knowing the reasons to invest and pay off debt is a good start to evaluating your position and making your eventual decision.
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