Anonymous
Should I forgo investing to clear my mum's debt?
I'm currently a final year uni undergraduate. My mum owes the bank more than 60k with a 4.5 percent interest rate per year. She doesn't have a habit of saving and is jobless. I have about a year till I graduate.
I was planning to start investing once I have an income source but right now, I'm not sure if I have the financial ability to do that anymore. So should I focus on clearing my debts first or are there any other possible options to explore?
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Yes clear the debt first because 4.5% fo 60k is not a small amount. Investment has risks and may not be gaurantee a return of higher than 4.5%.
On another note, not sure how your mum end up owing the bank the money. If it is because of poor habits, it is important to end the bad habits else the root problem will never be solved.
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Yes, should focus on clearing the debt first as the interest rate is on the high side. Also better to build up some emergency funds once you are earning an income before starting to invest to have a peace of mind.
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Certainly to clear the debt first. 4.5% interest is a significant sum on a $60k debt over a long period of time. I wish you well in coping this difficult financial predicament you're in.
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Clear away the debt first; investing might turn out both ways ; and if your liquidity is stuck in th...
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