Current location:	Home
Current mood:	irritated
Entry tags:	money

Long term investment vs. paying off debts
I've accumulated enough money in my RSP that I can do a couple of things: pay off nearly all of one of my credit cards or invest in a GIC and wait for it to mature. This is the classic question: pay off debts or invest? The bank advisor considered the amount in question to be a neglible debt, but that's easy for him to say.

Incidentally, I'm getting very cheesed off with my current bank. This is the second time they've made misleading statements to me about their services. First, they made me think I was getting a free life insurance policy, and neglected to mention I would also be paying for other insurance policies. Second, they made me think I would get 6% interest on a 5-year GIC, when that was only for the last year, and actually it would be more like 2.7% for the entire term. This is increasingly making me think that switching to a credit union is a good move.

Frankly, I think there is way too much easy credit floating around today. I never had credit cards until I was in my 30s, and I'm glad I stopped at two. Considering I can't even use them for buying stuff online or making rental deposits, those interest payments are nothing but a chore.

Now that I've actually typed this out, paying off debt seems like the better option. I know some people would say that I need to take my credit rating off life support and the best way to do that is regular sufficient payments, but I want the damned thing gone with the decisiveness of surgery, not the slow drip of chemotherapy.

If someone has a reason why investment is better than debt reduction, I'd like to hear it