Millennials see investing and paying debt as 'either/or' but it's not - Business Insider

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Millennials are too focused on paying off debt to invest, but experts say there's room for both

." Based on that, any student-loan debt with an interest rate of 7% or higher should be paid off before you start investing, Krawcheck said. Otherwise your investment gains will be virtually wiped out by the cost of your debt.

Unfortunately, credit-card debt usually carries a much higher interest rate, so it's often better to prioritize that before investing., if you qualify, and free up cash for investing. Just make sure to get quotes from multiple lenders to figure out which one will most benefit you.Amassing a proper retirement nest egg takes decades, and every year counts.

According to the "Invest & Thrive Survey," 19% of the millennials who said they didn't invest said one reason they didn't have awas they had too much debt . Just over a quarter said paying off debt would spur them to contribute to a 401. Having access to a 401, which allows employees to save money before taxes and grow their balance tax-deferred, is a privilege in itself. But some employers sweeten the deal byup to a certain amount. Experts often call this a "guaranteed return" or "free money" you shouldn't pass up, unless you're seriously strapped for cash or burdened by high-interest debt.

It's important to remember that everyone handles money differently, and emotions often come into play, whether we invite them or not. If debt represents a significant emotional burden to you, regardless of the interest rate, paying it off before investing may be the way to go. Just know that you'll probably have to invest or save more later to make up for lost time.Something is loading.

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