FirstStepsInvesting

Decoder · Debt and cash

High-interest debt

Debt whose APR is high enough that paying it beats investing almost every time. Published frameworks draw the line in bands: at 10% APR and up, paying is urgent — it is a certain double-digit saving; between 5% and 10%, the order shows you the side-by-side math; under 5%, minimums usually suffice while you invest. Credit cards at 20–30% APR are the canonical case.

For your first $100: Every $100 sent to a 24.99% card is a certain $25-a-year problem removed. No fund promises that. That is why expensive debt sits ahead of investing in the order.

Interest, in plain wordsAPR (annual percentage rate), in plain wordsEmergency fund, in plain words

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