How would you like paying off debts? Gradually or wholely?

Skysaint

Verified member
While running a business trip, it is only natural that sometimes we do have to take loans from any preferred source either to start up a new business, to keep the business going or maybe to take the business to another level. And not having the capital required for these has led many business men to go into taking loans.
So while taking loans, as a business man how would you suggest one pays it back so that there will be no problems in future and also ensure that he keeps to his word? Would you suggest he pays it back, bit by bit until he is done paying off the depts or should you rather suggest that he save up the money and make the payment once and as a whole. Which means is more safer for a business man?
 

btaliat

VIP Contributor
Before incurring any debt, there is always terms and conditions about the payment whether it is by installment or as a whole. But if this option is not there, or I am asked as a business man how would I love to be repaying my loan, I would prefer a whole so that I can focus on other things.
 

Good luck

Valued Contributor
The best way to pay up debt should be gradually,it now depends on how you want to be paying it some may be weekly ,monthly or yearly which is annually.there would always an agreement between he two parties on how the lender wanted the debt collected to be paid to avoid chaos.If this is settle,then there won't be any dispute about the debt
 

Good-Guy

VIP Contributor
I would always prefer to pay off my loan wholely. I never like to remain in debts and I have always wanted to pay off my debt as soon as possible. There are many institutes that provide products and services on installements and they also earn interest on installments. I have always hated interest and this is why I always prefer to avoid installments and debts.
 

Sherman198

VIP Contributor
I do not really think we can be really analyzing this, especially when we are not in debt. I think when we are in debt, it will depend on what is convenient for us. If it is convenient for us to be paying little by little as our financial strength can carry then that's how it's going to be. I don't think being in debt is a good thing.
 
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Skysaint

Skysaint

Verified member
The best way to pay up debt should be gradually,it now depends on how you want to be paying it some may be weekly ,monthly or yearly which is annually.there would always an agreement between he two parties on how the lender wanted the debt collected to be paid to avoid chaos.If this is settle,then there won't be any dispute about the debt
I do agree with you on this, paying off debts gradually is really the best option for me. For instance, one took a loan to start up a business enterprise then from every profit one makes out of the business will be divided into two parts; one for reinvesting and the other for making part of the payment. In this way, we could minimize the pressure that do come from being in debt.
 

sunnystar

New member
As for me, I love loan to be paid as a whole if there's opportunity to do that. There are some things you would able to do whenever you have loan on your neck. It is like you have burden on you. Loans sometimes stop progress in business because you would be able to produce more in company. Perhaps the repayment is in the same amount with profit made during the period.
 
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Skysaint

Skysaint

Verified member
As for me, I love loan to be paid as a whole if there's opportunity to do that. There are some things you would able to do whenever you have loan on your neck. It is like you have burden on you. Loans sometimes stop progress in business because you would be able to produce more in company. Perhaps the repayment is in the same amount with profit made during the period.
Well, sometimes it actually depends on the method that suits you best. If one actually has the whole money at hand then it is better off to pay back the debts as a whole and relieve yourself from unnecessary pressure. But in a situation where you only have part of the money with you, then it's best not to wait till it accumulates rather you pay the money back gradually.
 

Alexandoy

VIP Contributor
For me, a small debt should be paid in whole and on the agreed date of payment. For big loans it is best to pay in installments which is usually monthly. When we availed of a bank loan to buy a house we paid the monthly installment for 13 years which was pretty good because we could afford the amount of installment.
 

chicnthin

Verified member
It would depend on a lot of things. It depends on the contract or conditions. It depends on how much money you have as compared on how much you owed. Personally, I like to pay all of debt in one payment, so I won't have to think about it again, but that is if I have enough money.
 

Lens1000

VIP Contributor
Obtaining loans could be so demanding sometimes. The loan obtained are naturally used for something we couldn't do due to lack of capital. So, loan becomes the available option. Paying back loan depends on the convenience and the amount we can afford to pay back. I will prefer to pay in strata to enable access larger amount for business.
 
I want as much low-interest debt as possible. Consumer debt? Credit card debt? No way. It's all about interest rates. We're seeing all-time lows.
 

Abigael

Valued Contributor
If the person is earning so much from the business then it is best to just pay off the loan at once and forget about it. But in the case where only a small amount is earned, then is good to pay it back bit by bit. Then you can have some money remaining to use on other expenses.
 

btaliat

VIP Contributor
I would always prefer to pay off my loan wholely. I never like to remain in debts and I have always wanted to pay off my debt as soon as possible. There are many institutes that provide products and services on installements and they also earn interest on installments. I have always hated interest and this is why I always prefer to avoid installments and debts.
You are very right. When you pay off your debt wholefully, you won't be thinking over that again. And there will more time to focus more on another important things to do. Though before obtaining debts, there must be agreement on how the debt will be repaid. But if this clause is not there, paying wholefully will be better.
 
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Skysaint

Skysaint

Verified member
For me, a small debt should be paid in whole and on the agreed date of payment. For big loans it is best to pay in installments which is usually monthly. When we availed of a bank loan to buy a house we paid the monthly installment for 13 years which was pretty good because we could afford the amount of installment.
Yeah, personally I do support the idea of paying through installment as the amount is usually affordable to earn within the timeframe given. Waiting for your money to accumulate so you can pay wholely can be very detrimental and risky too as you don't know what will happen the next minute and trust me, anyone who has suffered the effect of being in debt before won't want to experience such a second time
 

Mandy96

VIP Contributor
As for me, it is always easy to pay off debts gradually, because I find it so much more easier to pay it in installment, do not get me wrong, I am not saying one should not pay it in whole if you have the financial capability, but as a business minded person, it is not wise to pay it all at once because the money could also be used to support or invest in something else that will yield more income for you. Do you know that the premium payments being to insurance companies is what they use to invest in another business that brings in more money for them.
 
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Skysaint

Skysaint

Verified member
It would depend on a lot of things. It depends on the contract or conditions. It depends on how much money you have as compared on how much you owed. Personally, I like to pay all of debt in one payment, so I won't have to think about it again, but that is if I have enough money.
You are probably right about that. The person or the financial institution you actually borrowed the money from should state clearly how they want you to clear the debt you owe them or atleast there should be a mutual agreement between the both parties. But if this isn't the case then it would depend on who actually borrowed the money and how he wishes to pay, there are those who would like to make repayments by installments, others who have the whole money at once would just pay off and be free while some would want to save up to the total amount they borrowed before they can pay back.
I am actually advising against the last set of people as anything can happen anytime and you will lose your money while trying to save up
 
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Skysaint

Skysaint

Verified member
If the person is earning so much from the business then it is best to just pay off the loan at once and forget about it. But in the case where only a small amount is earned, then is good to pay it back bit by bit. Then you can have some money remaining to use on other expenses.
I think I do agree with your point. If wishes were horses or if everything is in normal condition I think paying off debt wholely would be a better option, atleast your mind would be off it as you've pointed out. But sometimes we are not able to earn the whole money at once or maybe if you're to pay back the whole amount that you would have nothing left to even take care of your basic needs then you will have to pay bit by bit.
I guess most people are already aware of this anyway just that I don't actually support the idea of saving up to the total amount before clearing your debt. Slow and steady always wins the race
 

Good-Guy

VIP Contributor
For me, a small debt should be paid in whole and on the agreed date of payment. For big loans it is best to pay in installments which is usually monthly. When we availed of a bank loan to buy a house we paid the monthly installment for 13 years which was pretty good because we could afford the amount of installment.

I also agree that being in debt feels painful and it makes us look like as if we owe something to people an d this is why I have always paid off my debt on time and wholly. As far as installments are concerned, the biggest disadvantage of paying in installments is that you may need to pay extra interests on debts and loans. This is why I always avoid installment payments that require us to pay interest.
 
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