Episode #687
~~~
Episode Show Notes: https://biggerpocketsmoney.com/episodes/
~~~
Subscribe to our Weekly Newsletter: www.biggerpocketsmoney.com
~~~
Want to be a guest on the show? Apply here: https://biggerpocketsmoney.com/contact/
~~~
If You Want 50% Off the First Year on Monarch use code ‘Pockets’: https://www.monarchmoney.com/
~~~
Connect with Scott and Mindy:
Scott: https://www.instagram.com/scott_trench/
Mindy: https://www.instagram.com/_mindyatbp/
~~~
Follow BiggerPockets Money on Social:
Facebook: https://www.facebook.com/groups/BPMoney
Instagram: https://www.instagram.com/biggerpocketsmoney/
~~~
Should you pay off all your debt before investing? Or is that costing you years of financial freedom?

In this episode, we’re tackling the debate that divides the FIRE community: aggressive debt payoff versus strategic debt management. We break down two real case studies to show you exactly when to prioritize debt payoff and when to invest alongside debt.

You’ll discover:
~ The interest rate threshold where investing beats debt payoff (and why it matters)
~ Student loan strategies that most people get completely wrong
~ How to determine whether you should pay off debt or invest
~ Two detailed case studies with specific recommendations you can apply to your situation

This isn’t about telling you debt is good or bad—it’s about giving you the framework to make the right decision for YOUR financial situation. Whether you’re drowning in debt or debt-free and wondering if you made the right call, this episode will change how you think about the relationship between debt and building wealth.

00:00 Being Debt-Free is OVERRATED
02:36 Good Debt vs. Bad Debt
09:53 Investment Strategies with Debt
26:12 Avalanche vs. Snowball
30:32 Strategic Use of Debt