Right, but the purchasing power of that money is important. If a loaf of bread is $1000, $500 in interest isn’t as impactful as if a loaf of bread was $1. (At that point it’s basically the lender’s problem anyway)
The debt becomes cheap if inflation ramps up enough, but if the market is outpacing the inflation (big if), the money would be better kept in the market.
But you’re right about it not being a binary decision. If OP has multiple high interest debts, they’d be better using some money to pay down the highest interest debt first, while also investing/saving some.
Right, but the purchasing power of that money is important. If a loaf of bread is $1000, $500 in interest isn’t as impactful as if a loaf of bread was $1. (At that point it’s basically the lender’s problem anyway)
The debt becomes cheap if inflation ramps up enough, but if the market is outpacing the inflation (big if), the money would be better kept in the market.
But you’re right about it not being a binary decision. If OP has multiple high interest debts, they’d be better using some money to pay down the highest interest debt first, while also investing/saving some.