Cahoot loan - pay off and close account?

purplepurple

Hi there... I hope someone can help me with this!
We've had a Cahoot flexible loan for 3 years and are now (finally) in the lucky position to be able to pay off the remaining £700 in one go.... the interest rate has just gone up to 8.9%... do you think we should pay it all off and close the account, or pay it off and leave the account open, just incase we need it in the future?
Any suggestions? Thanks!!:D

Gemmzie

I'd say pay it off and close it - remove the temptation of getting back into debt

Congrats on getting there

lynsayjane

close it, definatly. i payed off my cards once and kept one 'for emergencies' then ended up with over 2k of debt just on credit cards again!

EllieB_2

I can't really see any advantage in keeping a loan account open. There are advantages in keeping a credit card at a nil balance open - they are useful if you want to for example hire a car (practically impossible without a credit card) or use it to book flights on line etc. But they are only worth having if you are ABSOLUTELY sure you will NEVER use them for any other purpose and will ALWAYS pay them off when the first statement arrives. Otherwise don't bother, you will end up in debt again. If in any doubt close the account. I speak from experience - I kept a credit card for emergencies and then used it for other things and am now trying to clear a 2k balance. Be careful. x