Repay the loan or Invest ?

I have read quite a few articles on different blogs and also seen people calling in on some of the call-In programs asking if they should repay the debt they carry or invest the money they have .

I have a simple take on this question . If you have at least a couple of months expense put aside as emergency saving and have a life insurance cover and also a medical Insurance cover for your family . Then go ahead and repay as much of your loans as possible .

In case you carry multiple loans , repay those loans that do not provide you with any tax deductions first as also probably they carry higher interest rate and once those have been repaid ,start repaying the others.

Even in case of a mortgage or a housing loan , if you can , prepay as much you can without paying penalty and If you are allowed to increase your EMI do so.

Nothing can describe the sense of relief and freedom a person can experience, when he owes nobody no money .

Image: Credit is due