Wanted advice

gallifreyangirl

Currently i have a loan with nationwide which is 10,000 i took out over six years which i currently have had about 14 months but prior to that was topping it up stupid i know. I have been made redundant and just wanted to ask what you thought as was thinking of paying of all this debt as have now found a new job.

poorandindenial

hi gallifreyan girl

We need a bit more info, are you saying that you can clear your loan with your redundancy payment now you have a job?? If so then yes, do it (once you have started our new job)!!!

Do you have any other debts??

gallifreyangirl

i can clear my loan with my redundancy yes. I don't have any other debts no as have recently paid my cc off.

poorandindenial

In that case once the ink is dry on your new contract and you have started in your new job I reckon you should clear the loan and then you can start saving. Otherwise if you have savings and a loan at the same time you generally end up with a net loss because generally the interest on the loan is less than that earned on the savings, especially now that the interest rates have tumbled. IT will also reduce your monthly financial committments.

doodledo_2

I agree with PAID I would pay the loan off and be debt free. Any interest you make on savings is probably less than the interest charged on your loan

gallifreyangirl

thanks guys you been helpful i think i will go ahead and pay it all off as soon as the money comes through.

doodledo_2

Will be a fantastic feeling and hopefully you will save a bit of interest paying it off early too.

gallifreyangirl

good point not thought of that saving the interest as i will have paid earlier and yes be good feeling,