It’s Christmas season once again. You just heard Jose Mari Chan’s “Christmas in Our Hearts” for the 87th time. You’re considering your plans for the impending holidays. And among a lot of other things, the thing you might be looking forward to the most is the upcoming
In fact, it’s wise to pay debt obligations as soon as you can, especially if they have
What’s your debt anyway?
First of all, you might want to look into what your debt exactly is. And it’s not just about how much it is. Knowing the type of debt you’re in is also
It’s advisable to bring out a calculator, just to see how big your debt will grow in three or five years (since a lot of investments last that long anyway). There are a lot of helpful online calculators that make debt computations easier.
What’s the investment?
Now this is the trickier part, since assessing how your planned investment might fare involves some crystal ball magic. Well not exactly, but you would do well if you weigh all possibilities. And doing so would involve a lot of research, to answer questions like “What type of investment is it,” “Is this legitimate,” “How long will it take before it pays off,” “How much would the return of investment be,” and “What are the risks?” The last two questions are
At what point are you in your life?
This may sound like a philosophical question, but it pays to take into consideration some factors such as your age, your income, and your status in life. Factors such as having a high disposable income, being younger, and having no obligations such as a family to raise would end up helping you become more amenable to an investment. The basic rule is that: the more obligations you have and the lesser your ability and time to make money, the harder it will be to sustain an investment and the safer it is to stick with paying off any debt you may have.
Which route would likely end up being better?
The basic question here is this: is your projected return
Do you want to know more tips on how to handle your finances well? Explore GoBear Philippines and get the best deals on various financial products, as well as helpful tips on debt payment and more.