facebookI'm currently paying back my parents $100 monthly for the CPF education loan I took up last time. Should I try to clear this debt faster by repaying a higher sum (eg $200) or continue at a min of $100? - Seedly

Advertisement

Anonymous

07 Jun 2019

Random

I'm currently paying back my parents $100 monthly for the CPF education loan I took up last time. Should I try to clear this debt faster by repaying a higher sum (eg $200) or continue at a min of $100?

I'm not intending to ask my parent to waive away the repayment of loan for me hence I'm here to ask which is a better option. Thank you. Thank you guys in advance! Assuming that lump sum repayment is not an option sadly.

Discussion (12)

What are your thoughts?

Tee-Ming Chew

Tee-Ming Chew

07 Jun 2019

Co-founder at Seedly

Definitely recommend to clear the debt as fast as possible to avoid interest. The longer it takes to clear the debt, the more interest you need to pay.

In fact if you can do lump sum repayment, that will be even better!

View 2 replies

Gabriel

Gabriel

07 Jun 2019

Undergraduate at National University of Singapore

If the repayment amount incurs interest, then you should consider repaying a higher sum each month so as to clear off the debt as soon as possible to reduce the amount of interest payable.

View 1 replies

Huang Yixuan

Huang Yixuan

29 Nov 2018

Person at Seedly Community

Yeah try to clear it asap man. Debts are not good. Maybe you can try to cut down on your expenditure?

Same boat here. Currently serving NS so won't need to repay. Initially wanted to one shot pay back to clear debt ASAP. But after some thought, I would choose to pay 100/200 per month, the rest will be used for investments. I'm confident of being able to get more than 2.5% returns in my I investments, hence I choose to repay slowly.
This only applies if you are confident that you can beat the interest rates for your loan, if not best is to repay ASAP so that the interest doesn't snowball.
There is no shoe that can fit everyone's feet. In the end the decision can only be made by you.

Like what Gabriel mentioned, if your debt has interest tagged to it, then better to clear ASAP. If t...

Read 5 other comments with a Seedly account

You will also enjoy exclusive benefits and get access to members only features.

Sign up or login with an email here

Write your thoughts

Advertisement