Treat Debt Repayment Like an Investment in a Return Guarantee

If you are just starting to invest, you may be overwhelmed by your choice. What are the best investments you can make to maximize your future returns? If you still have debt (especially on credit cards), then one of the best investments you can make is to pay off it.

As the personal finance blog Rags to Reasonable points out, your debt heavily affects your net worth . Investing and paying off debt have the same effect on your net worth: they increase it. Some debts may not cost you as much as some investments, but paying off your credit card is always the best return for your money .

Paying off a debt is a much less attractive investment than buying a real estate or building a portfolio of stocks, but it is really simple, extremely profitable and (in case I have not made it 1000% clear), it is completely guaranteed.

If you get it right, investing is about making your money more valuable in the long run. You are hoping that if you put $ 1000 in an investment now, it will be worth over $ 1000 in a couple of years. However, if you put that $ 1,000 into paying off your credit card debt, it’s like the sooner you pay off the principal, the less you will pay in interest.

Looking for a great investment? Start with your duty. | Out of rags within a reasonable time frame via Rockstar Finance

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