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?

Discussion (19)

What are your thoughts?

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Edited 09 Dec 2022

I'm so sorry to hear this. It must be a real burden and stress on you. 60k is a huge amount. Need to clear debts first but i wonder with 1 person's income, that might take very long. And with interest keep increasing, it's really tough.

Have you try seeking help here: https://supportgowhere.life.gov.sg/

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Frankie Aufhauser

04 Jan 2023

Debts first

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Calvin

15 Dec 2022

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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Minimalist Investor

15 Dec 2022

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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