Is it more profitable to repay a loan in its entirety asap as to avoid interests ?

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Is it more profitable to repay a loan in its entirety asap as to avoid interests ?

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Anonymous 0 Comments

Depends on the interest rate.

For low interest loans a lot of economists will actually recommend to pay them back as slowly as possible – your money can earn more interest elsewhere than you’re paying on the loan.

For higher rate loans like credit cards, absolutely pay them off as quickly as possible.

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