Should millennials invest or deal with their debt?

Debt may be a necessary evil, but it can also be a strategic wealth-builder

Neil Jonatan 4 October, 2019 | 1:59AM

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Debt is a necessary evil for many Canadian millennials – especially if they want a degree or home. Everyone wants to be debt free as soon as possible. But sooner is not always better. Under the right conditions, investing is a faster way to build wealth than paying off debt.

“It all depends on the person. If somebody really hates debt, then by all means, pay off that debt first,” says Alim Dhanji, a Certified Financial Planner (CFP) with Assante Financial Management in Vancouver. “If your debt is costing you five per cent, then your guaranteed rate of return is five per cent. You can’t get a guaranteed rate of return in the stock market.”

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About Author

Neil Jonatan

Neil Jonatan  Neil Jonatan is a Toronto-based financial writer specializing in student finance, currently enrolled in the Journalism program at Ryerson University.

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