If you have any loans, you may be wondering whether it makes sense to pay them off. And if so, exactly when should you use savings to pay off loans? It’s a good question. Loans feel like a burden. And it would probably feel great to never have to think of them again.
But the actual answer depends on your particular situation. In general, if your loan rate is higher than the interest you get on savings, you should probably pay them off. That’s because your loans are costing you more than you’re earning. But, as I said, your situation may require a different choice.