When cash flow becomes tight

If you want to stop your SIP due to unexpected medical expenses, job loss, relocation, or an unexpected family obligation that puts your monthly budget under stress, it may be sensible to stop for a short period of time. SIPs only work if you invest comfortably without stretching your finances. If continuing the SIP means dipping into credit cards or loans, pausing it can keep you from falling into costly debt.

When you have high-interest debt to clear

If you have debt from credit cards, personal loans, or overdue EMIs, it is usually better to first pay off the amounts that carry high interest. These debts can charge anywhere from 20-36 percent annually, far higher than the long-term returns you might earn from your SIP. In this case diverting your monthly

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