Capital Management

Before Chasing Returns, Close Expensive Debt

By Walid Mograbi · 2026-04-13 · 2 min read

Some debts pull you backward faster than any uncertain investment return can move you forward.

Why this lesson matters

Some debts pull you backward faster than any uncertain investment return can move you forward.

The core idea

• High-cost debt drains income month after month, so repaying it may come before chasing uncertain investment returns.
• Ranking debts by cost and risk can free financial room faster than opening investments too early without a plan.
• Once debt is under control and basic emergency reserves exist, saving and investing become more stable.

Practical example

Paying down a very high-interest balance can be the stronger first move before putting money into a speculative investment idea.

Common mistakes to avoid

• Opening risky investments while expensive debt is still compounding.
• Treating all debts as equally harmless.
• Skipping emergency basics before moving up the risk ladder.

What to do next

It gives you a more realistic financial priority before increasing risk or opening a new investment.

Important caution

Do not confuse wealth building with ignoring debt that is consuming your income at a high rate.

Further reading

• https://www.investor.gov/introduction-investing/investing-basics/save-and-invest/pay-credit-cards-or-other-high-interest
• https://www.investor.gov/introduction-investing/investing-basics/save-and-invest
• https://www.moneyhelper.org.uk/en/everyday-money/credit/how-to-prioritise-your-debts