Title: Why Pay off Loans Early? Savings and Peace of Mind
Headings: 
Why Pay Off Loans Early?
Benefits of Reducing Debt
Save Money
Improve Financial Strength
Peace of Mind
When to Not Pay Early
How to Do It
Article Sources

Content: When to Not Pay Early
Paying down debt early leaves less money in your pocket for other things than if you paid only the minimum amount due each month. That might mean you enjoy fewer luxuries in your monthly budget, or you make do with a smaller cash cushion, making it more difficult to pay unexpected expenses. What's more, you pay an opportunity cost: You'll have to come up with additional funds to put toward other goals, such as retirement or a down payment on a house, for example. Only you can determine whether your money is better spent paying down debt or using it to invest in retirement, a new home, or education expenses. If the interest you earn on investments is greater than the interest you're paying on your debt, it makes more sense to invest than it does to pay off the debt early. This rarely is a simple equation, however, so it's best to consult with a financial professional. If you have a precomputed loan, you won’t save by repaying early because the costs are already baked into the loan. Most standard loans, however, calculate interest daily or based on the balance due on a certain date each month. 3 ﻿ Be sure you understand the terms of your loan if you plan to pay the debt early.