The question of paying off debt fast or slow is a no brainer for me personally. Financially speaking it’s the obvious best answer because the faster you pay off your debt the less interest you’re going to pay.
I guess the flip side to this would be paying your debt off slower means you should have more money in your pocket. More money in your pocket gives you the ability to “live a little loser” and have more fun, right? Sure you will have some extra cash for entertainment and to make other purchases but this still doesn’t make sense to me.
I would rather pay off my debt as fast as possible and not have a penny to spare verse paying if off slowly. If I’m paying off my debt slow it means I’m probably making more purchases which in turn means more debt for me to pay off. This is how people get caught in a vicious cycle of debt, credit cards start to stack up and it’s down hill from there.
Some people will argue that they are using reward credit cards so it’s actually going to work out in their favor to make more purchases and pay off debt slowly. What do I say to these people? You’re Crazy! Why do you think credit card companies offer these so call rewards for you to use their cards? They do it because it works in their favor.
On the surface it appears that you are getting a great deal but in the end you may get 500.00 dollars in frequent flyer miles but it cost you 1600.00 dollars in interest. Pay off your debt as fast as possible because in my world I can’t think of one advantage not to.