Debts or Savings

DizzyMum_2

Hello,

I have a flexible loan. I also have two boys that do cubs, rugby etc ...

I know during the course of the next year it's going to cost approximately £80 a month for all the trips that go with the stuff they do - which is the best course of action - save £80 a month in a pot or pay more off the flexible loan and then 'borrow' it back when the trips need paying for.

Thanks

DizzyMum

forsya

Hi DizzyMum

Kids hobbies can be soooo expensive can't they!

I think if you know it os going to be so much a month, then you should include the cost in your budget.

Is good to throw as much at loan of course, but not sure how much yours is and what money you have to throw at it.

I have a second job, and I keep the money I get from that seprate to use for one off costs or things I know are coming up. But I guess as a mum with 2 boys may be a bit busy for work!!

CLAPTON

its a no brainer,

would you borrow £2000 at say 10% and then save it at 4%?
snowballing is all about throwing money at your highest APR debt all things being equal...so if you can borrow it back then reduce the highest APR debt and borrow back when you need it.

boys are expensive! well actually so are girls

moongarden

you won't earn any interest on money in a pot. you will also be tempted to dip into it for odd things.

meanwhile you will be £80 more in debt to your loan at whatever rate incurring interest charges on it.

skintchick

I agree. If you are able to 'take it back' from the loan when you need it, at least put it to good use reducing the interest on the loan.

Slightly off topic, but do they have to go on ALL of the trips? It sounds very expensive. Could they go on a couple less?