Why It Makes Sense to Pay Off Debt Slowly
Everyone agrees that paying off debt is good, and usually faster is better . However, there may be situations where slower debt repayment is a good idea. As if your financial habits suck.
As personal finance site Money Ning explains, paying off debt is a lot like losing weight. You can take drastic action to reset your debt now, but if you don’t have strong habits as a foundation, you’ll just get it back when you’re done. If you spend your savings on paying off debt, you may fail as soon as the following expenses appear.
As soon as I stopped sticking to the diet strongly, I started making smaller, more sustainable changes. It took me longer to reach the desired weight, but after reaching it, it was easier to maintain it. The gradual changes in my diet and exercise stuck. The same approach can work when it comes to debt. Focus on changing your money habits so that they can be sustained over the long term. Then go about your debt.
Of course, there is nothing to say that you cannot do both, but it helps to look at your situation and address your specific needs. You may be paying more interest in the long run while waiting to pay off your debt, but will it be worth it if you have solid habits after you pay off your debts? Only you can decide.
Could you better pay off the debt slowly? | Ning’s money