11/04/2026
Is all debt bad? 🛑 Not if you know the math.
The old advice says to pay off all debt as fast as possible. The truth? Every debt has an interest rate, and every dollar has an opportunity cost. Your strategy should be based on math, not emotion.
Here is exactly how to prioritize your extra cash:
🚨 Pay Off Aggressively First (High-Interest Debt):
• Payday loans (300%+): Pay off immediately.
• Retail store cards (29.99%): Eliminate next.
• Credit cards (19.99%+): Always crush these as fast as possible.
⚖️ Balance Paying with Investing (Medium-Interest Debt):
• Car loans (7%–9%): Pay these off before you start aggressive investing.
• Student loans (Prime + 1–2%): Invest for the future while paying the minimums.
📈 Invest Rather Than Overpay (Low-Interest Debt):
• Mortgage (4%): If your TFSA/RRSP portfolio earns 8%, investing gives you a 4% net annual gain over making extra mortgage payments.
Know the exact rate on every debt you own. Then, choose the path that makes your net worth grow the fastest.
Are you currently team "pay off the mortgage" or team "invest the difference"? Let's debate in the comments! 👇
