Asked by Anonymous
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.
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.
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.
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!
Yeah try to clear it asap man. Debts are not good. Maybe you can try to cut down on your expenditure?
Like what Gabriel mentioned, if your debt has interest tagged to it, then better to clear ASAP. If there is no interest, then you can either take your time to repay so you can invest your money first, or pay it off soon to return the money to your parents ASAP.
Personally I wouldnt. I don't see the big deal of being debt free. Having more cashflow and liquidity is more important to me.
I can generate more than 2.5% returns, so I'll hold off paying the loan.
Plus if I need money, I can sell my investments but I cannot withdraw what I already paid off to my loan.
Clear your debt as soon as possible so that you could have more money to save or to invest in the future.
Yes you should try 200 a month to clear it off faster and avoid interest!
Clear your debt as fast as possible. Then after that you can use the money to invest and increase your capital for your future.