Crush Debt or Grow Investments? How to Make the Best Choice for You

NerdWallet's Smart Money Podcast

NerdWallet Personal Finance

Business, Education, Investing, How To

4.2 • 665 Ratings

🗓️ 19 December 2024

⏱️ 23 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Learn how to tackle credit card debt, build savings, and decide between debt payoff and investing for financial growth. How can you pay off credit card debt faster and smarter? When should you prioritize paying off debt over investing your money? Hosts Sean Pyles and Sara Rathner discuss credit card payoff strategies and building an emergency fund to help you strengthen your financial security. They begin by talking to Adam, a Smart Money listener, who has questions about what to do with a windfall. They discuss options for paying down high-interest credit card debt, with tips and tricks on using balance transfers wisely, automating payments and reducing financial stress. They also discuss whether to prioritize debt payoff, fund investments or save for other financial goals — before getting into strategies for balancing long-term retirement planning, managing 0% APR debt effectively, and enjoying life without derailing financial progress. Then, host Elizabeth Ayoola and NerdWallet debt writer Tiffany Curtis join Sean to answer a listener’s question about loan payoff strategies while deciding when it’s better to focus on investing versus debt repayment. They explore the pros and cons of the snowball and avalanche debt payoff methods, how to calculate returns from paying down debt versus investing, and strategies for multitasking financial goals to build a stronger financial future. In their conversation, the Nerds discuss: paying off credit card debt, prioritize debt or investing, snowball vs avalanche method, balance transfer tips, high-interest credit cards, emergency fund savings, how to pay off debt, investing vs paying debt, debt payoff strategies, personal finance tips, managing debt, 0% APR credit card, financial windfall tips, credit card debt help, debt-free planning, emergency fund tips, investing basics, save for retirement, Roth IRA strategies, 457 retirement plan, credit card payoff calculator, budgeting for savings, automating finances, debt-free goals, financial security tips, financial planning for families, saving for college, 529 plan benefits, high-yield savings accounts, avoiding credit card interest, tips for financial independence, and when to invest. To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email [email protected]. Like what you hear? Please leave us a review and tell a friend. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:30.3	Welcome to NerdWallet's Smart Money podcast. I'm Sean Piles. If there's one question we get more
0:35.9	often than any other on the show, it's probably
0:38.7	what's the best way to pay off debt? That goes for debt of all kinds. Mortgage debt, student
0:44.3	loan debt, credit card debt, car debt, you name it. If it's a debt, we get questions about it.
0:50.1	And there's always lots of news around debt, news that we've covered throughout the year.
0:54.1	So today, for our special series featuring the Best of Smart Money 2024, we are reaching back
0:59.7	into the archives for our favorite segments about debt and how to pay it off.
1:04.2	It's a best of for best practices.
1:06.9	Now, on to the show.
1:13.9	Welcome to NerdWet's Smart Money Podcast, where you send us your money questions and we answer them with the help of our genius nerds.
1:21.1	I'm Sean Piles.
1:22.3	And I'm Sarah Rathner.
1:23.6	If you have a money question for the nerds, call or text us on the nerd hotline at 901-730-6373.
1:30.6	That's 901-730 nerd.
1:32.7	Or email us at podcast at nerdwallet.com.
1:36.4	Follow us wherever you get your podcast.
1:38.2	And if you like what you hear, please leave us a review and tell a friend.
	...

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