3 signs you're paying off debt too fast
I think it's pretty safe to say that no one likes debt. I don't think that's a controversial thing to say, so it makes sense that most of us want to pay it off as soon as we possibly can.
But it might be time to ask yourself, ‘Am I paying down my debt too fast?’ I know that's a pretty weird question to ask yourself, but I want you to think about these three signs that you might be paying down your debt a little too quickly.
#1 Are you short on cash at the end of the month?
If the amount of money that you're sending to pay your debt each and every month is so high that you find yourself with no or very little money in your bank account, and there's still a couple of weeks left until you're paid again, you might be overdoing it.
#2 You don't have an emergency fund saved.
Now you don't want a small unexpected expense to pop up and then just completely derail your finances. Building up even a small amount of money in a savings account, while still working on paying down your debt, will give you something to fall back on when that inevitable financial emergency pops up, that we all experience.
#3 You sacrifice investing to pay down your low interest debt.
One of your best friends, when it comes to investing, is time the more time you allow your money to sit and grow the better off you'll be in the long term. So, if you're passing up on investing for your retirement just to pay down your low interest debt on things like mortgages or student loans, which will take you years to pay down, you're missing out on valuable time for your investments to grow and possibly even free money, if your job offers a match.
I know paying down debt is a very important goal to have, but please just make sure that you don't ignore all the other important areas of your financial life in the process.