How to allocate money to debt repayments, savings and investments

As interest rates go up, it’s time to reassess how much debt your household can carry

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Have you made up your 2023 intentions? If not, one of the key topics to consider is how much debt your household should carry.

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Like corporations, there is a sweet spot for how much debt is optimal. And especially as mortgages come up for renewal, it’s a good time to renew interest in how you allocate capital between debt repayments, savings and investments.

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Mortgage decisions

The biggest liabilities for most families are mortgages. As interest rates go up, this will impact how much of a mortgage a household can comfortably carry.

I suggest an important consideration is the stability of family cash flow. Is there a risk of reduced household income in the foreseeable…

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