“If you pay at least your “statement balance” every month, it doesn’t matter. If you don’t ... you’re getting hosed.”
Yeah I donno.
Some of my numbers:
Credit card debt interest charge - 22%
Investment Account interest charge - 11%
Mortgage interest rate - 1.86%
Investment account appreciation rate (2023) - 114%
So do I do the Dave Ramsey thing and pay off debt, or do the Robert Kiyosaki thing and max out my earnings?
A lot of ppl are doing the Robert Kiyosaki wealth building tract.
Tons of ppl build wealth with debt. The first thing us schlebs have is credit card and mortgage debt to be used to leverage investments.
Can you reliably make > 22% rate of return on your investments, year after year?
I doubt it. One or two bad years can really trash the long-term statistics. Early 2020 was a buying opportunity. For me. For some people, it was a disaster.
Credit card debt is evil. IMO.
Car loans are almost as evil. IMO.
Mortgages are tolerable. IMO.
Leveraged investments are gambling. IMO.
Famous financial advisors who don’t even know you are to be taken with a grain of salt.
You know your situation, and how much financial risk you’re able to take.
YMMV.
People paying 22% interest to finance their household expenses are not doing it to create investment capital. Most of them don’t have 500 dollars in their savings account.
Sorry to hear that and see those awful numbers.
no brainer to me. Get out of debt and stay out of debt for everything except a home mortgage and pay that off early.