Near-north Ontario, French River | I don't know the right answer . I used to think that using every extra penny to pay down debt as soon as possible was the way to go. Now I'm of the mind that it may be better to pay down some debt but also to squirrel away some as cash as well. Few years back I had some really good years, so I paid down a sizeable amount of principle knowing that in the long run it would save me big on interest. Problem was it left me short of working capital ( cash), when I went through a couple of rougher years. The loans I paid down were locked in, long term mortgages so there was little risk of higher payments if interest rates went up. Was paying down the principle the right thing to do? Most definitely in the long run, but it did cause some short term 'problems'. How much 'extra' do you figure on having laying around? Maybe a 50/50 split of principle pay down and cash reserves might be the way to go. |
How do you pay back your debt?
