Comments on: Pay off debt or invest? http://www.onemint.com/2009/10/09/pay-off-debt-or-invest/ Helps You Make Better Financial Decisions Sat, 11 Feb 2012 17:32:04 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Manshu http://www.onemint.com/2009/10/09/pay-off-debt-or-invest/comment-page-1/#comment-191420 Manshu Mon, 28 Nov 2011 00:03:31 +0000 http://www.onemint.com/?p=2800#comment-191420 You have to compare how much tax you save versus how much your overall loan payment will shorten to find out. I think someone who pays a lot of interest as part of their EMIs and is in the early stages of their loan is better off by paying off the loan because that will apply to the principal and reduce the duration of the loan or the EMIs but someone who is at the stage where the principal forms more of their EMI - they will probably benefit from the tax saving aspect of this. There won't be one answer for everyone, it will depend on how much of the loan is left, at what interest rate and what is the tax bracket of the individual Ruchi. You have to compare how much tax you save versus how much your overall loan payment will shorten to find out.

I think someone who pays a lot of interest as part of their EMIs and is in the early stages of their loan is better off by paying off the loan because that will apply to the principal and reduce the duration of the loan or the EMIs but someone who is at the stage where the principal forms more of their EMI – they will probably benefit from the tax saving aspect of this.

There won’t be one answer for everyone, it will depend on how much of the loan is left, at what interest rate and what is the tax bracket of the individual Ruchi.

]]> By: Ruchi http://www.onemint.com/2009/10/09/pay-off-debt-or-invest/comment-page-1/#comment-191388 Ruchi Sun, 27 Nov 2011 20:34:30 +0000 http://www.onemint.com/?p=2800#comment-191388 What if you invest in debt instead of p aging home loan because you get the tax benefit too. Is that a wise financial decision ..? Manshu, you expert comments will be most welcome. What if you invest in debt instead of p aging home loan because you get the tax benefit too. Is that a wise financial decision ..?
Manshu, you expert comments will be most welcome.

]]> By: Manshu http://www.onemint.com/2009/10/09/pay-off-debt-or-invest/comment-page-1/#comment-41511 Manshu Tue, 27 Oct 2009 00:08:06 +0000 http://www.onemint.com/?p=2800#comment-41511 Thank you Chirag. Thank you Chirag.

]]> By: Chirag http://www.onemint.com/2009/10/09/pay-off-debt-or-invest/comment-page-1/#comment-41374 Chirag Mon, 26 Oct 2009 02:29:02 +0000 http://www.onemint.com/?p=2800#comment-41374 A very good post! Helpful :) Your personal views are always so good ! A very good post!
Helpful :)
Your personal views are always so good !

]]> By: Manshu http://www.onemint.com/2009/10/09/pay-off-debt-or-invest/comment-page-1/#comment-38675 Manshu Sat, 10 Oct 2009 18:13:25 +0000 http://www.onemint.com/?p=2800#comment-38675 Yeah with rates that high, it is impossible to beat the market. Gotta get rid of that credit card debt first for sure. Yeah with rates that high, it is impossible to beat the market. Gotta get rid of that credit card debt first for sure.

]]> By: Nash | nil2million http://www.onemint.com/2009/10/09/pay-off-debt-or-invest/comment-page-1/#comment-38574 Nash | nil2million Sat, 10 Oct 2009 06:12:46 +0000 http://www.onemint.com/?p=2800#comment-38574 Hi Manshu, I totally agree with you. In Malaysia, the credit card interest rate is 18% p.a. unless ure incredibly lucky, that's hard to beat or sustain in the market. It's great financial practice to settle ur credit card debt first. Nash Hi Manshu,

I totally agree with you. In Malaysia, the credit card interest rate is 18% p.a.

unless ure incredibly lucky, that’s hard to beat or sustain in the market.

It’s great financial practice to settle ur credit card debt first.

Nash

]]> By: Unfair Contract http://www.onemint.com/2009/10/09/pay-off-debt-or-invest/comment-page-1/#comment-38515 Unfair Contract Fri, 09 Oct 2009 22:51:40 +0000 http://www.onemint.com/?p=2800#comment-38515 I always tell clients that there is good debt and bad debt. But I would always recommend having NO debt and deal in cash and gold. I always tell clients that there is good debt and bad debt. But I would always recommend having NO debt and deal in cash and gold.

]]> By: Manshu http://www.onemint.com/2009/10/09/pay-off-debt-or-invest/comment-page-1/#comment-38493 Manshu Fri, 09 Oct 2009 21:21:55 +0000 http://www.onemint.com/?p=2800#comment-38493 As your regular reader, I am quite familiar with how passionate you are about getting rid of your debt. It's really commendable! As your regular reader, I am quite familiar with how passionate you are about getting rid of your debt. It’s really commendable!

]]> By: Jessie http://www.onemint.com/2009/10/09/pay-off-debt-or-invest/comment-page-1/#comment-38469 Jessie Fri, 09 Oct 2009 18:26:15 +0000 http://www.onemint.com/?p=2800#comment-38469 I agree with you here - paying off your consumer debt should be priority number one. I agree with you here – paying off your consumer debt should be priority number one.

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