If you have high-interest loans like credit card dues or personal loans, pay these off first. The interest rates for these are usually much higher than what most investments can earn, so clearing them saves more money. For lower-interest loans like home loans or car loans, you can decide whether to prioritise repayment or balance it with investing, depending on the outstanding amount and interest rate. The earlier you pay off your loans, the lower your total interest outflow. This is a financially wise move.

Ideally, plan your finances properly to avoid taking high-interest loans in the first place. From the very first salary itself, start creating an emergency fund, plan for other short-, medium- and long-term goals. If you already have taken loans, debt repayment should be the main priority, but you can still invest a small amount alongside to benefit from the power of compounding.