What to do with £2000?

Xpaced

Hi Moneysavers,

I know there have been a few student loan posts recently, I was just wondering if anyone could give me advice on what to do with a relatively small amount of money I’ve just received.
I graduated from uni this summer without an overdraft (thank you ASDA night shifts!) but with a loan SL debt of around £12K. And as you guys have heard, its going up around £30 a month.
I graduated with a 2:1 in Radio Production and I’m finding it hard getting a related job. (as I’m sure many other media graduates are – no comments about doing a proper degree please!) At the moment I’m temping full time, getting around £210 a week, trying to fit in unpaid radio work at the same time.
A savings fund my parents set up when I was born has just matured and I’ve now got an extra £2000 to play with. What shall I do?
Obviously I’ve got the student debt, which would be nice to pay off, but I’m looking to move out of my parents house sometime in the next year. Kindly, they’re not asking for rent at the moment, but I feel very guilty about this and would like to pay some soon. I own a car, which is paid for but theres around 150/month to pay on petrol, insurance etc. (I need this for my work) Other than that, not many out goings, phone, a night out here and there etc.
So what should I do with the money? Put it in a savings account to help for the move out fund? Pay off some of the growing debt? Or should I not worry about that until I’m earning the 15K?

Any help would be appreciated, thanks for taking the time to read this.

super_mario_4

if i were id go for the savings route. i know you must be itching to get that student loan paid off, but the sad truth is that that student loan (and mine as well, so i know how you feel) is going to be around for some time even if you pay 2k onto it.

Bare in mind your paying base rate intrest on the loan, so if you just kept hold of the 2k a bit longer (have a look on the savings message board) you will then be able to a) have a lump sum to put down for a mortgage and get a cheaper rate because of this or b) if you save the 2k wisely, then in a few years you will have a bigger lump to wack onto your loan

Northernbird_2

I'd save the money. I have student loans that I'm paying off (free in April 2009!), and they are at the bottom of my priority list. They're really low interest and you only pay them back when you're earning a certain level of salary.

If I ever win the lottery (a girls' gotta dream!), I still wouldn't pay them off. I'd rather keep the money in a savings account given the kind of debts they are.

nickinoo

Save the money, as the others have said don't pay off your student loan as the interest rate is so low.

DaveF_4

I have a 10k student loan but also the same amount in savings and have no plans to pay it back untill they take it from me. I pay 3.2% interest on the loan and make 5% on 3k of it in an ISA, the rest is in online accouns making 4.65% (3.49% after tax - or therabouts). Another plus side to this is that i have instant (almost) to the cash if i need it for any reason. Not looking forward to the payments starting next tax year but it will be nice to be free of the debt in the long run.

Xpaced

Thanks guy and girls, I'll be heading over to the Savings Board ASAP! In someway its good to know that theres lots of people in similar situations. Thanks again

moonbeam682

Hi Xpaced & welcome

agree with everyone else about the student loan.

as you are hoping to move out next year it will be great to have this money to fall back on as moving out can be surprisingly expensive! :eek: