Author Topic: What should I do? Pay down debt vs invest  (Read 2276 times)

lyson15

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What should I do? Pay down debt vs invest
« on: July 18, 2016, 07:40:30 AM »
I have debt of 7k on my LC at 4.9% interest. I received 1000$ from tax returns that I don't need for my emergency fund and I'm not sure what the best option would be: use it to pays down my LC or start investing in a TSFA ?

Is it worth opening a TSFA with such a small amount?

v8rx7guy

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Re: What should I do? Pay down debt vs invest
« Reply #1 on: July 18, 2016, 08:07:38 AM »
If it were me, I'd kill the debt.  If you put some effort into that, it will be gone in no time.

NestEggChick (formerly PFgal)

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Re: What should I do? Pay down debt vs invest
« Reply #2 on: July 18, 2016, 09:15:44 AM »
I'm with v8rx7guy - pay down the debt. Once the debt is gone you'll have plenty of time to invest, and a lot more freedom to do it with any and all of the available money you've got.

ShoulderThingThatGoesUp

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Re: What should I do? Pay down debt vs invest
« Reply #3 on: July 18, 2016, 09:49:54 AM »
7k isn't very much and 4.9% is a lot. Clear your debt.

boarder42

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Re: What should I do? Pay down debt vs invest
« Reply #4 on: July 18, 2016, 09:55:58 AM »
4,9% is borderline enough and the amount is small enough i'd kill it off (and i'm usually in the invest camp)

lyson15

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Re: What should I do? Pay down debt vs invest
« Reply #5 on: July 18, 2016, 10:27:51 AM »
Thanks for your insights. I am really eager to start investing (I'm still in University) but it makes sense to pay off the LC first, so that's what I'll do instead.