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Finance...Pay off or not Pay off

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  • 16-11-2010 8:27pm
    #1
    proon4
    Closed Accounts Posts: 238 ✭✭


    heres the question..Suppose you had 10 euros.. and you owed 8 euros, do you think it would be a good idea to pay off your loans at this time?
    Tagged:


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    #2
    Zaph
    Registered Users, Subscribers Posts: 47,298 ✭✭✭✭Zaph


    If the interest rate you're paying on the money you owe is greater than the interest rate you're earning on the money you have, generally it's a good idea to pay off the loan. Of course this assumes you have no particular use for the money you currently hold. Paying off the loan and enduring hardship as a result is counter-productive and there's no real point in doing that. An alternative is to pay as much of the loan as you can afford without financially crippling yourself, thus reducing the repayment period on it.

    Please refer to the Banking & Insurance & Pensions forum if you have any further questions.


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    #3
    proon4
    Closed Accounts Posts: 238 ✭✭proon4


    Zaph wrote: »
    If the interest rate you're paying on the money you owe is greater than the interest rate you're earning on the money you have, generally it's a good idea to pay off the loan. Of course this assumes you have no particular use for the money you currently hold. Paying off the loan and enduring hardship as a result is counter-productive and there's no real point in doing that. An alternative is to pay as much of the loan as you can afford without financially crippling yourself, thus reducing the repayment period on it.

    Please refer to the Banking & Insurance & Pensions forum if you have any further questions.

    Thanks Zaph...


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