Yesterday’s Houston Chronicle basically reprinted this October 15th blog post by Mark Cuban: Where to Put Your Money Right Now.
His main point is that it makes no sense to pay interest on debt that is greater than the return on your investments. I agree. However, I’m not sure I like the idea of selling current investments to pay off debt UNLESS that debt is exceedingly high and you have no other means to pay it off.
Unfortunately, I don’t know a whole lot of people who have tons of debt on one side of their balance sheet and lots of investments on the other side. Usually high credit card debt is a symptom on poor money management skills and someone with poor money skills doesn’t usually have investments. All this means is that IF a person doesn’t have the funds available to pay off their debt then they’re going to have to make some decisions and come up with a different plan. But, he is absolutely correct in his pleading for American’s to get out of credit card debt! I’ll second that!