517 – Should you pay off your debt or invest?

517 – Should you pay off your debt or invest?

Author: Doug Hoyes July 27, 2024 Duration: 29:45

You've got some extra cash. Should you pay down debt or invest it? In this episode, Doug and Ted discuss whether to use your extra money to tackle high-interest credit card debt, invest in an RRSP, or pay down a mortgage.  They'll also share their advice on what steps to take if you're unable to pay off your debt—like turning to a consumer proposal. Tune in to learn how to effectively manage your finances and make the most of your money.

Time Stamps:

00:00 Pay off debt on your credit card

02:53 Pay off debt or put money in an RRSP?

04:54 Pay off your mortgage or invest in an RRSP?

06:16 Investing may be better than paying off debt for first time home buyers

07:03 Investing makes sense when you inherit a lot of money

08:08 RISK

11:42 The smart way to pay off your debt

13:17 Is there an advantage to paying off a secured debt vs an unsecured debt?

16:19 If you can't pay your debts you can file a consumer proposal

21:29 Receiving a lump sum of money during a consumer proposal

27:18 Final thoughts

Related Links:

Should You Pay Down Debt or Invest in RRSP? - https://www.hoyes.com/blog/pay-down-debt-or-invest-in-rrsp/

Who Can File a Consumer Proposal? - https://www.hoyes.com/blog/who-can-file-a-consumer-proposal/

Calculating Payments in a Consumer Proposal - https://www.hoyes.com/blog/calculating-payments-in-a-consumer-proposal-the-last-step/

How to File a Consumer Proposal in Ontario - https://www.hoyes.com/consumer-proposals/filing-consumer-proposal-process/

Consumer Proposal Help When Expecting Lump Sum Payments - https://www.hoyes.com/blog/consumer-proposal-when-lump-sum-payments-received/

Hidden cameras reveal how big banks are upselling you (Marketplace) by CBC - https://youtu.be/htm38oM5WFE?si=jNfQ-euLVoS-p7Sn

 

Pay Down Debt or Invest Calculator -  https://www.getsmarteraboutmoney.ca/calculators/pay-down-debt-or-invest-calculator/

Pay Down Your Mortgage, or Contribute to an RRSP? - https://www.taxtips.ca/rrsp/pay-down-mortgage-or-contribute-to-rrsp.htm

Should You Ever Borrow Money to Invest? - https://youtu.be/XSTycxxd4Zc?si=KODHy7BZ28x52Qc4


Doug Hoyes sits down each week with a different specialist to untangle the complicated feelings and hard numbers around owing money. The conversations in Debt Free in 30 move beyond simple scare tactics or dry theory, focusing instead on actionable strategies for managing debt, rebuilding savings, and making informed investing choices. You’ll hear from trustees, financial planners, and counselors who explain concepts in plain language, stripping away the industry jargon that often leaves people feeling overwhelmed. Whether it’s navigating a consumer proposal, understanding credit scores, or starting to invest with a tight budget, this podcast provides a clear-eyed look at the steps toward financial stability. Doug’s approach is grounded and pragmatic, reflecting his deep expertise in the field, making each episode feel like a direct consultation with a knowledgeable guide. Tuning in regularly offers a consistent source of demystified advice, turning what can be a stressful topic into a manageable process. It’s that blend of expert insight and relatable conversation that defines this particular personal finance podcast.
Author: Language: English Episodes: 100

Debt Free in 30
Podcast Episodes
526 – What Canadians Need to Know About Credit Repair [not-audio_url] [/not-audio_url]

Duration: 30:28
Is credit repair a scam? Learn the truth from experts about repairing damaged credit, understanding credit scores, and managing debt. Doug Hoyes and Ted Michalos explain essential topics like credit utilization rate, res…
524 – Entrepreneur by Necessity: Business Advice with David Barnett [not-audio_url] [/not-audio_url]

Duration: 34:11
Thinking about starting a side hustle or going out on your own? Whether you're a seasoned entrepreneur or a first-timer, this insightful episode with author and business expert David Barnett is packed with valuable advic…
522 – Hot Button Budgeting Topics (Compilation) [not-audio_url] [/not-audio_url]

Duration: 25:59
Pros and Cons of Budgeting: What Works, What Doesn't, and What to Do Instead | Debt Free in 30 | Episode 522 Is budgeting the best way to manage your finances, or is there a more practical approach? Debt Free in 30's Dou…
521 – Debt Collectors: Practical Advice (Compilation) [not-audio_url] [/not-audio_url]

Duration: 28:51
In this eye-opening episode of Debt Free in 30, host Doug Hoyes dives into the world of debt collection with Blair DeMarco of Kingston Data and Credit. Together, they unravel the complexities of debt collection and help…
520 – Expert Insights on Getting Out of Debt (Compilation) [not-audio_url] [/not-audio_url]

Duration: 36:05
Explore essential financial topics and practical advice to overcome debt and achieve financial stability. If you're struggling with high-interest debt, considering installment loans, or exploring mortgage refinancing, th…
519 – The REAL Way to Build Better Credit [not-audio_url] [/not-audio_url]

Duration: 32:05
Can You Improve Your Credit Score Without Debt? | Debt Free In 30 | Ep 381. If you're new to credit or have recently completed an insolvency filing, you may be thinking about ways to improve your credit score without tak…
518 – Why More Credit Won't Make You Truly Independent [not-audio_url] [/not-audio_url]

Duration: 20:58
Discover why chasing after more credit to achieve financial freedom may not be the most effective strategy, how it creates dependencies, and learn alternative paths to be more independent. Links: What To Do When You Have…
516 – Online Banking: Navigating Fees, Services, Apps and Benefits [not-audio_url] [/not-audio_url]

Duration: 33:14
Doug is joined by BIA Insolvency Counsellor Charlie Kovacs. They discuss banking in the digital age and cover topics such as service fees, chequing accounts, digital transactions, payment methods (digital vs. cheques), p…