When you’re bogged down in debt, whether it’s credit cards, loans, or some combination of both, setting aside money to invest can be challenging. It can also feel somewhat counterproductive investing when you’re paying interest on debt.
With household debt in the United States skyrocketing to $16.5 trillion in the third quarter of 2022—which is more than $2 trillion higher than prior to the pandemic in 2019—more than a few people are likely to be facing this dilemma. Does it make more sense to focus on eliminating debt or investing? And under what circumstances should you try and do both at the same time? The answer to those questions won’t be the same for everyone.
