Debate: Is it smarter to pay off debt fast or invest extra cash?

I ran into this problem when I had $5,000 left on a credit card at 18% interest but also had a retirement account through work. Paying it off took me 8 months of throwing every spare dollar at it, but I wonder if I should have just put that money into the market instead. What do you all think, should you prioritize killing high-interest debt or let compounding work for you in investments?

3 comments

3 Comments

jenny_fox28d ago

Did you check if your employer matched contributions cause that changes the math completely?

the_lisa28d ago

That 18% interest is brutal, what was your ROI in the market during those 8 months?

jade22626d ago

Friend got burned the same way with a car loan.