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If you have money that you could invest, but you also have a loan, you have the option of using the money to pay down the loan instead.  Paying down the loan will give you a guaranteed return by reducing your future loan balance, and eventually eliminating future loan payments or giving you more money when the loan is paid off.  This is the same benefit that you get from a fixed-income investment such as a [[Bond Basics | bond]] or [[CD]], which also gives you fixed amounts of money at specific future times.   
 
If you have money that you could invest, but you also have a loan, you have the option of using the money to pay down the loan instead.  Paying down the loan will give you a guaranteed return by reducing your future loan balance, and eventually eliminating future loan payments or giving you more money when the loan is paid off.  This is the same benefit that you get from a fixed-income investment such as a [[Bond Basics | bond]] or [[CD]], which also gives you fixed amounts of money at specific future times.   
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Therefore, it makes sense to treat paying down the loan like a bond investment, and compare this option to your other investment options.
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Therefore, it makes sense to treat paying down a loan like a bond investment, and compare this option to your other investment options.
    
==Non-mathematical considerations==
 
==Non-mathematical considerations==
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