Simulates both strategies month by month over your horizon and tells you which one actually leaves you better off.
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| Strategy | Debt-free in | Net worth at horizon |
|---|---|---|
| Throw spare cash at the debt | — | — |
| Pay minimums, invest the rest | — | — |
Both strategies are simulated month by month over your horizon. Strategy A puts every spare pound into the debt, then redirects the freed-up payment into investments once the debt is cleared. Strategy B pays only the minimum and invests the difference from day one. Net worth is investments minus any remaining debt, so the comparison is apples to apples.
The honest summary: guaranteed interest saved beats uncertain market returns whenever your APR is above your expected return. Credit-card debt at 19.9% is almost never worth carrying to invest at 7%. The interesting cases are the in-between ones — a 5% student loan or a 4% mortgage — which is exactly what this tool is for.
Almost always yes. Card APRs of 18–25% are far above any realistic long-run investment return, and clearing them is a guaranteed, tax-free return equal to the interest rate.
A mortgage below about 4–5% is usually worth carrying while you invest, because expected long-run equity returns exceed it. But overpaying is risk-free and stress-free, so the right answer depends on how much volatility you can stomach.
Yes — before either. A 100% employer match is an instant doubling of the money, which beats paying off even the worst credit-card debt.