Why Chloé Daniels Says Paying Off Debt Too Fast Could Cost You Wealth

Money coach Chloé Daniels challenges one of personal finance’s most sacred rules. With over 200,000 Instagram followers and a $350,000 net worth, she has the credentials to back up an unconventional idea: aggressively eliminating debt in just two years may have been the wrong move. Looking back on clearing $40,000 in debt on that accelerated timeline, she now questions whether speed should have been the priority.

The Case Against Rushing Your Debt Payoff

The conventional wisdom of personal finance screams one message: eliminate debt as fast as possible. Yet Chloé Daniels argues this approach misses a crucial window of opportunity. “If I had waited to be debt-free before investing, I wouldn’t have the $350,000 net worth I have today,” she reflects. The math is sobering—those extra years in the market could have yielded returns exceeding 40% in some quarters, opportunities that vanish if you’re sitting on the sidelines waiting to reach zero debt.

The Paradox: Why Wealthy People Handle Debt Differently

A fascinating contradiction emerges when examining how different income levels approach obligations. Chloé Daniels points out that “Debt is something the incredibly wealthy use to leverage their money and buy more assets.” Yet the middle class receives an entirely different narrative—debt becomes a villain to vanquish immediately, rather than a tool to potentially deploy strategically. This disconnect shapes financial destinies in ways most people never consider.

The Real Cost of Waiting for Debt Freedom

Timing matters enormously in wealth-building. Chloé Daniels explains that choosing between debt payoff and investment isn’t the only option available. “You can find a balance to find what works for you,” she suggests, rejecting the all-or-nothing mentality that dominates financial advice. When investors delay market participation while aggressively paying down obligations, they forfeit compound growth that compounds into substantial differences across decades.

Building Wealth Through Strategic Balance

Rather than viewing debt elimination and wealth-building as opposing forces, Chloé Daniels advocates for a nuanced approach. The framework isn’t “debt first, then investing”—it’s “debt management alongside strategic investing.” This both/and thinking acknowledges that high-interest debt matters, but so does capturing market returns. The opportunity cost of perfect debt freedom often exceeds the interest cost of carrying some obligations.

Reframing How You Think About Financial Obligations

Perhaps the most liberating insight Chloé Daniels offers is this: “Your debt does not define you. And it does not have to hold you back from building wealth.” Before committing to aggressive payoff strategies, she encourages people to run the numbers on what they might sacrifice. The true measure of financial success isn’t a zero balance sheet—it’s whether your net worth grows.