Pay Off Debts or Invest

This is a question that has many people puzzled. Do I pay off my debts first and wait to invest or do I invest while I'm slowly paying off my debts? Many people puzzle me by insisting that they pay off debts before they start their investing for their future. I always ask WHY? The magic of compound interest only works when you actually start using it and start your invest. Keep in mind there is a difference between investing and just buying stuff. Investing is a long term plan and has rules to be successful at it. That is what we do at the link below. http://www.the10minutetrader.com/ We teach easy to use and easy to understand trading strategy that has been used for over 400 hundred years and it still works today. I just found a great video that drives this point home pretty good https://www.youtube.com/watch?v=zP0rP3X-nMg

Comments

1. Expecting 3% ROI per month is completely unrealistic. Not to mention the fact that market volatility can lead to losses in investing that weren't even mentioned in this video. The only thing guaranteed in this hypothetical scenario is for the debt to continue to accrue interest, in which case it makes the most financial sense to eliminate prior to investing.
2. How about the scenario when Tom lost his job and received $25000 as severance.
3. You never calculated how much interest was compounding on the debt though.
4. the way I say to do it is do both and calculate the return. Also if Tom has a higher interest rate attached to his debt it'd be wiser to pay a chunk of that. Pay $10k of his debt off. Take $40K and invest. That would make his payment lower then he can use a percentage of the interest earned to help with the payments.
5. This is the best mode I've seen online. Like to see some arguments against it
6. 3% per month, Where?
7. I agree with this perspective wholeheartedly. This is the method of tackling debts and investing that I think is best. You're the first person that I have encountered that has actually stood by this position. How has it worked for you?