New to saving

The_Dark_Defender

My situation:

Current a/c: 6k
CC: Maxed at 1k
Loan: 5k remaining, paying off 330 p/m

Have contacted MBNA about moving to 0% credit card but they haven't got back to me as of yet. I want to start saving but not sure what's best for me considering the debts I have. I would like to maybe put 1.5k - 2k in as a lump sum initally, and then deposit irregular amounts whenever I wanted to. I also want easy access to the money just in case.

I'm based in Ireland by the way.

Thanks for reading.

Lokolo

What is the rate on the loan?
Are there any penalties for paying it off early?

Say you have £1000. Interest rate on loan 6%. Rate on savings about 3%.

After 1 year:

Putting £1000 in savings = £1030
Putting £1000 in loan = £1060

So you would be £30 better off putting money towards loan as the total amount you would have paid compared to savings would means a loss of £30. This is why people say pay off debts first :cool: