Do you have savings and debt?

Flower08

Not really as it will then be on the credit card for another year til it can be paid off

SuSu1871

roves1 wrote: »

Well done, some serious debt busting.

They won't let you overpay, but will let you pay it off in full? Do you get the benefits in terms of interest savings if you do that?

I forgot to include the can't overpay option in the poll.:o

Hi roves, and thanks for that. I've been at it for 2 years now and this is the most frustrating part because I can't pay any more off the debt than the loan allows. I've got a comparitively good interest rate as well (6.9%) so it's not worth trying to move to a flexible loan for the sake of a few months.

According to my snowball, when I get to May/June, my o/s amount should equal my savings so I can clear what's left. I'll have to pay ~4-6 weeks' interest, which will be minimal. I'll save ~£140 in interest payments on the loan, which I might have made on my savings if I'd let the debt run its course, but savings rates aren't great right now, and it's more important to me to be debt free asap than, say, £100 better off in interest payments.

When I'm all clear I get to start saving again - for a house! I might have a month off first though - treat myself :rolleyes:

Naomim

I save a small amount every month. I save for car/motorbike repairs plus for when the road tax is due so I can pay it in one go and not put in on the credit cards as I've cut them up. I also put a bit by for clothes as I have a small child who grows at a rate of knots! I also save for Christmas.

I know I should put it all against the credit cards but I feel better knowing I'm stashing a bit so it's there when it's needed.

Naomi x

LilacPixie

I save and have savings as well as debt. Our car HP and loan both have penalties (10 per payment) for making overpayments so its better financially to save then settle early

Flower08

I really dont see how that is going t help. At the end of the day that money will still be on the card. I appreciate you are trying to help but i think you need to accept that people do not want to be pushed into paying off debts with savings. Financially i will be no better off if i pay off using my savings.
Many people like to have that safety net of savings

Flower08

No no i didnt mean anything against you, just that whether it makes financial sense or not many people like to have some money aside for emergencies etc...
In my case despite my interest rates being 15% i wont be any better off as at some point £1500 will be spent......on my holiday :j

SarahNeedle1872

I have savings as well as debts.... I save each month for car tax, insurance, Christmas, birthdays etc. At least I know that if my car breaks down, I can afford to pay for it.... plus I have an OD facility on my current acc for real emergencies

Lula-Hula

I agree with Flower08,

I paid over £500 off my CC earlier this year; wheel bearing went on the car, fridge freezer & tv died. I had no savings so had to put it on the card :mad: . I'm still paying the same amount off the card each month but now I have started a saving/emergency fund alongside. I plan to transfer any surplus to the card every few months, but will always maintain a few hundred - i'm a parent :rolleyes:

Flower08

yes which will just be added back on in 6 months time

Flower08

yes please do explain, i am genuinly interested if it will save me money i will perhaps do it but i dont see how it will save ant, just delay it