Balancing Investments vs Paying off Debt

At a Glance

If you’re faced with a choice between investing and paying off your debts, a well thought out strategy can enable you to achieve both. Balancing investments to pay off debts using surplus is one such technique that leaves you debt-free while still enjoying your investment returns.

To do that, you need to go from a situation whereby you’re spending more than your investments are generating - to end up with surplus income.

Depending on your strategy, investment balancing can mean that you maintain more short-term investment such as savings accounts, governments bonds, and more compared to the long-term ones (real estate, stocks, etc.) until you get out of debt to guarantee faster access to returns on investment.

However, perhaps the surest way to balance your investments is through talking to a qualified financial advisor to help you maintain a strategic portfolio of investments that will actually make enough to secure your debt freedom.

Why investments balancing to pay off debt is smart

Getting out of debt is a bold step and it will be worth every struggle as long as you get started. Staying in debt has serious consequences including damaging the ability to be trusted by lenders, vendors, and other business partners or associates.

Other than lost trust, your ability to achieve real financial growth is limited unless you take that first step towards living a debt-free life.

It all starts with doing something today - anything - towards being free of debt. As earlier suggested, an easier and proven first step could include talking to a financial expert to help you balance your investments to end up with surplus income for debt repayment.