The impact of the pros & cons can be understood by the individual depending on the age and how close to retirement he or she is. From the comments till now, most of the respondents are younger (I could be wrong). For someone who has joint income as mentioned in your example, it would work better to invest rs.10,000 in both if they can stretch themselves and achieve both objectives.
This analysis makes only mathematical sense. However, for an average Indian, there is the emotional need to be free of all obligations and have peace of mind. That happens only when you clear your debt asap.
Re: Big logic !
by Rabri Devi on Nov 28, 2014 11:09 AM
If everyone went by their emotions, then there would be no need for such advice columns. People would anyway do what their heart told them to do, regardless of any advice.