in debt but want to invest. - page 5.

Rikafip

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Quote from: darkangel11 on August 27, 2022, 02:43:28 AM

If you had 100k loan and ignored it, took another loan and invested everything a year ago at 30k you'd still make enough to pay back everything and have money on top of it by the end of the year.

That's not a very smart thing to, to go into so much debt for any investment, including bitcoin. Sure, you will most likely profit in the long run, but bitcoin price may stay below your entry for years and you might suddenly need money/lose job etc. On top of that, we live in very uncertain times with recession knocking at our door.

OP If I am you I wouldn't go more in debt just to continue DCA, no matter how tempting current bitcoin price is. You are supposed to use the money you don't need for everyday life and invest in bitcoin, and not the money you don't have.

Victorik

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Quote from: weeniehodler05 on August 26, 2022, 12:02:23 PM

right now i’m in debt for $6k but i want to keep DCA. should i focus more on pay my debt down or investing?

First rule in Crypto is to invest what you can afford to lose.
But in this case according to you, you are already indebted and what you should be doing now is looking for ways to clear that debt.

acroman08

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Quote from: weeniehodler05 on August 26, 2022, 12:02:23 PM

right now i’m in debt for $6k but i want to keep DCA. should i focus more on pay my debt down or investing?

personally, I wouldn't be comfortable being in debt. but if you are willing on taking that risk, it's your decision. I mean you could do well and be able to pay the debt and still have money left or you could lose the money and be in debt. If I were you I'd pay the debt first then invest rather than invest first, hope for the best to gain profit then pay the debt.

Z-tight

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Quote from: weeniehodler05 on August 26, 2022, 12:02:23 PM

right now i’m in debt for $6k but i want to keep DCA. should i focus more on pay my debt down or investing?

I feel this is a real life problem that you have to discuss with your family, spouse and good friends. Members in bitcointalk don't know anything about you personally, from your job to how much you earn monthly or weekly, but the people that are related to you will know about that, and they can help you to make the correct decision. Though it goes without saying that you must take the option that will enable you pay up your debt at the due time, now that option i can't know, only you and your family can.

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I know it may sound crazy but I'd try to negotiate paying the debt. If possible I'd ask for extension, keep paying lower rates and investing whatever I can.

Money is irrelevant, the only thing you can't buy is time. Every investor will tell you that they wish they had more time and knowledge earlier on in their lives. If you had 100k loan and ignored it, took another loan and invested everything a year ago at 30k you'd still make enough to pay back everything and have money on top of it by the end of the year.
Ultimately the more bitcoin you have the better for you in the long run.

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Quote from: weeniehodler05 on August 26, 2022, 12:02:23 PM

right now i’m in debt for $6k but i want to keep DCA. should i focus more on pay my debt down or investing?

I will differ here having read many comments in support of you repaying the debt first before pursuing investment. I think you should invest but that will depend on the attitude of your creditor towards the money. If they aren't pressing for a repayment I don't think that will be an issue then. However, you've to make sure you keep in touch with them so as not to give them a false assumption that you aren't willing to repay it. Hopefully, your investment pays off and you can speedily off set all you owe.

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Quote from: weeniehodler05 on August 26, 2022, 12:02:23 PM

right now i’m in debt for $6k but i want to keep DCA. should i focus more on pay my debt down or investing?

You should specify how long your debt is already standing and what is the payment date you give to the lender for your loan. Investing in cryptocurrency might take more than a year to get a good a profit so you should loan money on long term if you don’t want to mess with your investment over your loan due date. If you have a source of income to cover your loan slowly then you should continue focusing your investment but if your source of money for repayment is the loan money itself plus your potential profit then you are making a big mistake for taking that loan for crypto investment.

GiftedMAN

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Quote from: weeniehodler05 on August 26, 2022, 12:02:23 PM

right now i’m in debt for $6k but i want to keep DCA. should i focus more on pay my debt down or investing?

Too many good suggestions have been given to you but I will add a little by saying this, choose freedom as Lovesmayfamilis have said and pay up your debt of $6k so that you can be free and not remain in financial prison because that's what debtors are to their borrowers.
You can save up your money to invest which is the best way by so doing you won't be in any danger of embarrassment if your investment does not come out as planned. Don't forget that crypto investment is not a quick money scheme.

lovesmayfamilis

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To begin with, borrowing money is a very bad position. Whenever you take someone else's money, you have to give your own. Human psychology always slows down in repaying a debt.
Also, a decent person should not think about investing while he has debts. You are putting yourself in a debtor's prison. Living in debt means no freedom to me. Whenever you have a situation to buy something, you will have a "sword of Damocles" hanging over your head and a reminder that you are not free. Choose freedom.

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Well, you can do at the same time. If the terms for the payment of your debt is flexible then that's a good go signal that you should start to DCA. But no matter what happens, pay your debt.

If you want to move freely, financially. Then you have to pay your debt first and DCA. Also, it depends on the amount on how much you're going to pay for it as you DCA.

Don't forget about if you DCA, don't use another loan for it.

autumnleaf

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Quote from: weeniehodler05 on August 26, 2022, 12:02:23 PM

right now i’m in debt for $6k but i want to keep DCA. should i focus more on pay my debt down or investing?

Don't use borrowed funds to make investments; instead, make sure you have paid them back in full before making any investments in the projects of your choice. Debt-free living equates to mental tranquility.

pooya87

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It depends on a lot of factors that you never mentioned. @aoluain pointed out some of them but here are some more. What kind of debt it is, a bank loan or money borrowed from a family member? How are you supposed to pay it back, all at once or little by little?
I'd say if it is a bank loan and the payments are small you could still pay the loan back little by little and still buy bitcoin with any extra money you are left but if it is borrowed from someone else or you have to pay it back all at once then you should do it before you buy more bitcoin.

Keep in mind that there is always more ways to acquire bitcoin than just investing part of your salary. For example over the past 2 months I have been doing some sort of spring cleaning to sell stuff I have laying around that I don't need anymore, then use that extra money to buy bitcoin.
That way my salary is not touched and the plans I have for that are still intact, meanwhile I still buy bitcoin at the current discount in the dip.

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Quote from: weeniehodler05 on August 26, 2022, 12:02:23 PM

right now i’m in debt for $6k but i want to keep DCA. should i focus more on pay my debt down or investing?

If I were you, I will focus on paying my debt first. Keep investing and ignore the debt won't be a good idea, you may end up with a bigger debt. Most of the debt has an interest, "the longer the debt, the more interest to pay". If you have enough money to repay the debt, you better prioritize it, so it will be over soon. Once you have done with your debt, you can plan to have another investment. In my perception; paying the debt is an obligation, while adding a new investment is just an option.

hatshepsut93

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If you have income that is high enough to allow you to settle your debt in the near future, then you might be able to afford a Bitcoin investment. Just keep in mind that your investment could go down and further strain your financial situation and it could takes for it to recover and turn profitable. What would you do in such scenario? Because you shouldn't invest in Bitcoin or any asset if you are not prepared for the worst.

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Quote from: noorman0 on August 26, 2022, 12:34:04 PM

Pay off your debt first, the borrower needs the money more than you know. This is not just repaying a debt, but repaying the kindness of people who have been willing to give their trust.

Another general advice, don't invest anything from borrowed money. The current position, you are doing that.

Your profits from investing will only go to the interest of your loan borrowed, so for me it's only a waste of time and effort, pay off your debt first before taking another step. After all, investments will always be there. You just need the right timing when to invest so that the outcome will be most likely successful. And always invest on your extra money, not on the amount intended to pay your bills or for emergency funds.

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Quote from: weeniehodler05 on August 26, 2022, 12:02:23 PM

right now i’m in debt for $6k but i want to keep DCA. should i focus more on pay my debt down or investing?

You can continue to increase your debt using DCA only if there is 100% confidence that you will be able to repay the loan. But since there is no 100% guarantee in cryptocurrency, you need to reduce your debt and stop using DCA in order not to increase it.

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Quote from: weeniehodler05 on August 26, 2022, 12:02:23 PM

right now i’m in debt for $6k but i want to keep DCA. should i focus more on pay my debt down or investing?

Too risky. Highly unpredictable situation. There are so many external variables beyond your control. One the other hand, it depends on how urgent you need to repay the debt. - 1 month? 2 months? 6 months? Another factor to consider is how much you intend to DCA. This should inform your decision whether to go ahead with DCAing or straight up pay your debt.

NeuroticFish

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Quote from: aoluain on August 26, 2022, 03:51:39 PM

Yes it can be risky but it also depends on a few other details which the OP has
not mentioned.

You made a pretty good list, but there's also something we both forgot about:
it's expected that all the prices will grow. So OP will have to also have some backup funds for the winter.
So yeah, not a great time to have debts. I recommend him be overly cautious.

aoluain

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Quote from: NeuroticFish on August 26, 2022, 03:09:18 PM

Quote from: weeniehodler05 on August 26, 2022, 12:02:23 PM

right now i’m in debt for $6k but i want to keep DCA. should i focus more on pay my debt down or investing?

This is an overly risky situation. We cannot tell if bitcoin will grow tomorrow or fall more. If you buy BTC and still can pay your debt as scheduled, you may be fine investing, but otherwise I'd go with focusing to pay the debt first. Else, in case of emergency, you will have to sell your bitcoins at a price you may not like.

Yes it can be risky but it also depends on a few other details which the OP has
not mentioned.

* What is the term of the loan, 5 years?
* How much is the OP required to pay per month?
* Is the OP in arrears?

I have posted before that I took a FIAT loan out and bought Bitcoin just before the
last halving and saw gains of 5x. So I would throw something new into the mix
and suggest paying off the loan ASAP within the next 12 months and then take out
another loan this time next year before the next halving and pay off the loan in total
about 12 months after the halving.

I would like to add I am NOT a financial advisor, just my 2satoshi's worth of an idea.

A safer approach would also be to do both, pay off the loan and DCA Bitcoin as others
gave posted above.

NeuroticFish

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Quote from: weeniehodler05 on August 26, 2022, 12:02:23 PM

right now i’m in debt for $6k but i want to keep DCA. should i focus more on pay my debt down or investing?

This is an overly risky situation. We cannot tell if bitcoin will grow tomorrow or fall more. If you buy BTC and still can pay your debt as scheduled, you may be fine investing, but otherwise I'd go with focusing to pay the debt first. Else, in case of emergency, you will have to sell your bitcoins at a price you may not like.

Topic: in debt but want to invest. - page 5. (Read 980 times)