Pay Off Debt or Invest: A Balancing Act

If you find yourself with extra cash — either a lump sum or excess dollars from your monthly paycheck — you may be wondering what to do with it. If you have debt — such as a mortgage or student loans — the prudent option may be to pay off your balances. Yet it might make more sense to put the money to work in the form of investments that have the potential to generate greater returns than the interest rate on your debt.