Is borrowing to invest right for me?


Ask yourself these five questions:

  1. Do I understand how borrowing to invest works?
  2. Am I comfortable with the risk in the investments I want to make?
  3. How much interest will I pay each month? How does that compare with what I hope to make from my investment?
  4. If interest rates rise, will my costs increase? Will rising prices reduce what I make on the money I borrow?
  5. What if I lose some, or even all of the money I make with the borrowed money? Can I afford those losses? Will I be able to pay back what I borrowed from my savings?

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