32 – Should You Pay Down Debt, or Invest in RRSP?

On today’s show Vikram Barhat, a finance writer whose work has appeared in The Globe & Mail, BBC, and Morningstar Canada, answers a common question: If I save up $1,000, should I use it to pay off debt, or should I contribute it to my RRSP?

It’s a difficult question.  Paying down debt saves future interest, but contributing to an RRSP generates a significant tax saving for many people.  Vikram provides his thought process for helping make that decision.

In  the Let’s Get Started segment gives his thoughts (and not surprisingly he is not a big fan of debt).