Wednesday, November 7, 2007

Quick tip - Don't get into debt

OK, I know this is somewhat intuitive and self-evident but I am currently working on a much longer more detailed post on why Money is debt. The Video Money as Debt - has opened my eyes and I think it would be beneficial to open others as well.

Bottom line - don't go into debt - if you are in debt get out.

I have a co-worker friend who I would say is relatively financially savvy. However, we differ greatly on our debt-tolerance.

My opinion - that I've formed over the last several years - is that any type of debt should be gotten rid of as soon as possible.

Her opinion - is that people can still make money and sometimes achieve a lot better returns by investing the money they would have spent on debt into say the stock market
or other investments.

My argument for today would be - did you see the 360 points the Dow dropped today?

Bottom line - get out of debt & stay out of debt.

(I think I have the first part mastered - it's just the second part I'm having trouble with. )


Moneymonk said...

I say do both if you can- invest and attack debt. I still have debt and I am also investing.

To each it's own

I guess it depends how massive your debt is. If you have debt that will take you a year to get out of, investing will not hurt.

However, if your debt will take 2 yrs or longer to pay off, maybe you should slow down on investing

Reggie said...

With the rumors that nationwide credit card debt will be the next stumbling block for the American economy - I will continue to try and prioritize the debt before the investing.

But you're right 'to each his/her own'