BiggerPockets Money Podcast You DON'T Need to Be "Debt-Free" to Reach FIRE
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Oct 24, 2025 Is being debt-free necessary for financial independence? The podcast dives into the hot debate of aggressive debt repayment versus smart investment strategies. Listeners learn the key interest rate that makes investing more beneficial than paying off debt. Two intriguing case studies highlight different approaches: one entrepreneur thrives with debt, while an average household prioritizes payoff. Plus, discover how to choose between debt repayment methods and when to leverage debt as a tool in your financial journey.
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Context Determines Debt's Role
- Not all debt is equally harmful; context and purpose matter when deciding whether to pay it off.
- Debt can be a tool early in a FIRE journey and becomes more of a risk as you near goals.
Craig's Aggressive House-Hack Strategy
- Scott describes Craig who aggressively house-hacked and leveraged student loans while building income streams.
- Craig used debt strategically and focused on entrepreneurial alternatives instead of immediate payoff.
Carol's Midrange Debt Dilemma
- Scott introduces Carol: married, $90k debt with $60k student loans and $30k car loan on $135k household income.
- They face the classic choice of paying debt versus investing given limited extra cash.