Debt free is stress free . With uncertainty in job and life one should always focus becoming Debt free asap. It will bring peace of mind and you can enjoy your life to the fullest.

Mind you. . .    Rs 75 lakh house, purchased with a Rs 15 lakh downpayment and the remaining Rs 60 lakh home loan at 8.5% (avg.) for 20 years, actually costs Rs 1.40 crore.

There are two options to become Debt free.

OPTION 1. Recover your EMI 

Aditya has taken home loan of 1Cr For 20 years and he wants recover his EMI from Investment.
Loan Amount – 1 Cr.
Interest Rate – 8.5 pa. (Avg)
EMI Repayment – 86,780/-
Total (EMI) Amount– 2.08 Cr.
Solution:   Aditya needs  to *start an SIP of *Rs.23, 000 for 20 years
so he could accumulate 2.08cr at the end 20 years.

OPTION 2. Become Net debt free in 10 years

Staying with same example suppose He wants to become Net Debt free in 10 years (Asset = Liabilities)
After 10 years balance home loan amount would be 69.50Lakhs (calculated by amortization method). He can start of Rs.30, 000 for 10 years to become Net debt free.

Let me know if you have *any query. 

After all Debt free is stress free.*. . . . Blog by Santosh G Akerkar

Best Regards,
Santosh Akerkar