Anonymous
Should I lump sum pay off my uni loan now? Or invest it using Equity100 till the repayment period starts in Oct? What if there's a market downturn?
I've got a lump sum that can pay off my total uni debt of $40k now. But the bank has extended the loan repayment to start in Oct. So I've literally just deposited them into Syfe Equity100. Wondering if this is a right move? Should I keep it there till Oct? Or longer? Or should I withdraw it out and pay off my debt? What would you do?
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Kenneth Lou
06 Aug 2021
Co-founder at Seedly
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Personally, I'd pay off my debt first, because Equity100 invest in 100% stocks and as we all know, stocks are quite volatile.
Also, it depends on how much is the monthly/annual interest of your debt. If you are sure that the returns from investment are higher than the debt interest, sure, then invest the money. However, if your returns are lower than the debt interest, you're better paying off the debt because you will be losing money.
And we know that returns from stocks are never guaranteed!
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What is the interest rate for the uni loan? Why do you want to pay off the debt lump sum now? Are yo...
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I would definitely pay off all my debt first.
There is a saying in investing, the interest earned/saved is actually interest earned. Because it's guranteed savings.