If you've got spare cash each month, is it better to overpay your debt or invest the difference? Paying debt earns a guaranteed return equal to its interest rate; investing earns an uncertain one. This runs both strategies over the same budget and time, so you can see the gap in pounds.
Compare the interest rate on your debt with the return you realistically expect from investing. If the debt costs more than you would earn, clearing it first usually wins. The calculator shows both paths side by side.
Clearing a debt that charges, say, 7% saves you that 7% for certain, whereas investment returns are uncertain and can be negative. That guaranteed saving is why high-interest debt usually comes first.
Yes. A pension contribution that your employer matches is an immediate return that no debt repayment can beat, so it is usually worth capturing the full match before overpaying debt.
These results are estimates for general information only and are not financial advice. Check every figure yourself and seek appropriate advice from a qualified professional before making any decision. Read the full disclaimer.