I know someone who is a student and currently trying to pay off his student loans, while sorting this out, he came across an investment and he seems interested in it. Do you think its wise for him to invest while still trying to sort out the business loan, or do you think it would be better to sort out the loan first before investing.
Investing or settling debts?
- Thread starter eldavis
- Start date
That being said, it's important to weigh the potential benefits and risks of any investment opportunity. If the investment opportunity is low-risk and has the potential to generate a significant return, it may be worth considering, even if you have outstanding debt. However, if the investment opportunity is high-risk or speculative, it may be best to wait until your debt is paid off before investing.
I think you should do both side by side by. If you focus only on debt repayment, it will be too late to grow your investment portfolio and if you just focus on investment, your debt will pile up and repayment will be difficult.
The best way is to do both if that can arranged. Pay back a portion of the outstanding loan and at the same time, invest some money in stocks, mutual funds or bonds.
It is very important to ensure that you invest first then, you can use the money that is gotten from the proceedings to settle debt.
