Loans Should i payoff loans even if i have enough to pay for it or not?

RAHULRAJA

New member
I have mortgage of $250K @3.75% for remaining 24 years term (actual 16 years) and car loan of $43K @4% for 6 years term. I just recently sold some of the stocks and bank saving of total $110K (majority of case $70K from selling stock recently that I had from 2012) I still have $70K and another 160K worth of stocks in 2nd account that I am considering to sell. Should I pay off my loans by selling stocks i have or invest in other stocks or 2nd mortgage or go on safer route with mutual funds etc? Also should i consider refinance my loan(s) to maybe 10 year term @~3%?
 
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Deleted member 51169

Guest
For me collecting loan and paying off before the loan time is ideal. One the emotional pressure associated with it in my climes will evaporate. Two, the interested rate will drastically reduced (learnt this from a banker friend).
Being debt free I my target, unless the possibility of earning more in the next investment is there but if not, pay off and have peace.
 

btaliat

VIP Contributor
Check your future budget, if you know that you don't have more responsibilities to take care of, you can pay off all your debts for you to be debt free and be emotionally stable. But if there are some unforseen or some responsibilities you need to attend to, you can service the debt for some time.
 

kayode10

VIP Contributor
It will be very good to repay back your loan if you think the interest rate will likely double in the next few years down the line. you can sell off the remaining stock to repay back the loans if it happens that it is pressing and you are being required to pay back the loan within short time. I will not advise you to go for mutual fund because it takes longer time than usual before you can make good return on investment.
 

Abigael

Valued Contributor
I prefer paying back loans as quickly as possible before it's interest rates double up. That means that before I take a loan, I will have to calculate when and how I will pay it back. Also, it is best to increase your working efforts and earning so that you can earn enough money to pay back the loan.
 

kayode10

VIP Contributor
I will advise you to pay off your loan as you have lot of benefits to gain from this. Paying back your loan on time will improve your credit score. High credit score make it pretty much easier for you to obtain another loan in the nearest future. you can also apply for fast loan when it is not yet time since you are paying back regularly on time.
 

Skysaint

Verified member
It's very important to make repayments as soon as possible to avoid unnecessary pressure and tension and also to avoid the negative side that comes with not being able to pay back loans. If you already have the money for making payments, then I don't see what should possibly hinder you from doing the needful as it will save you from a lot of stress and disturbance
 

kayode10

VIP Contributor
it might be difficult for you to pay off the loan if it happens that the cash you have at hand is not even enough to cater for some of the needs you have at present. But you should make up your mind to pay off the loan anytime you are going out enough. You can also save your way to pay off the loan.
 

Good luck

Verified member
If you have all the loan,i will advise you pay it all so as to get another.human want are insatiable.there will always be needs to attend to at every point in time.but if you think there is a business you can quickly do to get some profit,then it is fine you invest and continue paying your loan gradually.
 

kayode10

VIP Contributor
There are some loan companies that will give you extra credit for paying your loan on time. If you are dealing with this type of company, I will advise you to pay the loan on time so as you have more chance to get me one. It is good to build your credit score and trust in case of urgency.
 

Bashbash

Active member
I prefer to pay off my loan if I have it, in other to free from it because loan is not something easy because of the interest on it , especially in Nigeria unlike USA and other countries where you will pay back with small interest ,I have try it before and regret it.
 
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