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Should I repay loan or save for house?
Kit82
Posts: 4 Newbie
I'm 25, I have £8000 on a loan I am repaying £200 a month off (for the next 4 years) apr 9.9%. I know I can get a loan with a 6.7% apr through my work.
I don't have any money in savings. I would like to start saving to buy a house eventually, I don't want to be 30 and living at home.
My take home pay is around £1170 a month after tax.
Should I up the monthly loan payments (either by getting new loan/overpaying existing loan) to £350 and pay it off in approx 2 years, which would leave me with £320 approx left over after bills spending money petrol etc...
Or should I stay at paying £200 a month and save £470 a month so I can buy a house in a couple years time with a deposit of just over £10k?
I don't have any money in savings. I would like to start saving to buy a house eventually, I don't want to be 30 and living at home.
My take home pay is around £1170 a month after tax.
Should I up the monthly loan payments (either by getting new loan/overpaying existing loan) to £350 and pay it off in approx 2 years, which would leave me with £320 approx left over after bills spending money petrol etc...
Or should I stay at paying £200 a month and save £470 a month so I can buy a house in a couple years time with a deposit of just over £10k?
0
Comments
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What early redemption penalties apply to the loan?If you've have not made a mistake, you've made nothing0
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Believe me - stay at home for as long as you can - i would be £900 a month better off!!!O/S Debt: PL £[STRIKE]15207.34[/STRIKE] £9884.55; HSBC £4060.99; Tesco£1430.15; M&S £5990.17; Virgin [STRIKE]£5158.69[/STRIKE] £4210.14; Egg £4619.00; O/S = ££30,292.42 AIM - To Be Debt Free 56 months0
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