Is it best to keep your debt or pay off your debt? You will most likely hear both answers to these questions depending on who you ask. This is a tough question and isn’t as black and white as it would seem. There may be reasons you want to keep your debt and there may be reasons to pay off your debt.
For some people, continuing to keep their debt may be the best option. If you have a family and a tight budget, putting extra payments toward that debt may not be the best financial decision to make. You always want to make sure you can take care of your basic necessities before paying off debt. You may also want to keep your loan if you have any low-interest debt. If the payments for these things are easy to manage, you may find that saving money for something else is better for your situation.
Paying off debt has its own considerations. Being debt-free can free your money and allow it to go into something else. You also will end up paying less in interest if you try to pay off your debt early. If you have any type of high-interest debt like credit cards, you may find that paying these off early will save you a lot of money (and help your credit score). If you are able to care for your monthly bills and have some money left over, you may find that paying off your debt will give you more money for the other things in life.