“I had my house paid off and then borrowed against it at 2% to invest the money for a higher return. Get out of bad debt and high-cost debt, but use low-cost debt to your advantage.”
“I stopped seeing this as a math problem after watching too many families pay off debt once and borrow again within a year. The real work is not choosing between the spreadsheet and the soul, but building a decision process so the debt does not come back.”
“I tell clients to look at the rate, not the rule. When I see credit cards at 30, 40, even 178 percent, attacking that debt first is usually the better return than anything the market promises.”
“I use a simple rate test: credit cards and anything over about 7% get paid down hard, because that interest is a guaranteed cost. Under 5% or so, I lean toward minimum payments and investing the rest, since the market's long-term return is higher and I want the investing habit alive.”
“I tell clients to kill the credit card debt first, because that floating double-digit rate is a guaranteed drag that almost no investment reliably outruns. After that, the math flips: a 3% mortgage or a tax-advantaged 401(k) match usually beats the emotional satisfaction of a zero balance.”
“I don't chase the higher return if the debt keeps me awake. For most people I sit down with in Medicine Hat, wiping out the non-deductible debt first builds the confidence they need to actually keep investing after that.”
“I’ve seen too many Dubai expats carrying credit cards at 40-47% APR while trying to build a portfolio, and that math never works. I put debt repayment first in the six-step plan because freeing up cash flow gives you a real investible surplus, not a theoretical one. Once the high-interest debt is gone and you have six months of expenses in cash, then investing becomes the engine.”
“I have seen too many people lose their investments because an emergency hit while they still owed money, so I tell clients: clear expensive debt and build a real emergency fund before you invest. Once your cash cushion is solid, then split extra money between aggressive debt payoff and long-term investments.”