Save or not to save?

Lewigreg081281

I have 2k I know not a massive amount but i am just wondering what to do with it really.

I have a loan that I still owe around 3k on maybe less. Should i pay it towards this or look into an ISA or are there any other options?

Along with this money I am wanting to start putting around £300 - £400 away each month what are my best options? Not very clued up on the saving side:(

cheers

debbie42

What is the interest on your debt, and what are the repayment options?

What are your goals regarding savings etc.?

There was a recent discussion thread which had a similar opening question and may be of interest. I'll see if I can find it.

Bloomberg

Lewigreg081281 wrote: »

I have 2k I know not a massive amount but i am just wondering what to do with it really.

I have a loan that I still owe around 3k on maybe less. Should i pay it towards this or look into an ISA or are there any other options?

Along with this money I am wanting to start putting around £300 - £400 away each month what are my best options? Not very clued up on the saving side:(

cheers

Your first priority must be to clear the loan, once you are debt free life is easy. This should not take very long judging by the above figures. Once the loan is cleared then start making regular payments into your ISA. Do not be discouraged by today's paltry interest rates. On thing is certain, rates are going to rise substantially. All the best.

Lewigreg081281

Just spoke to the loan people. They have given me a final settlement figure of £3988 however they said if i paid £2k off it won't come off the balance and will go down as an overpayment and I will still be paying my usual monthly installment.

Is this true? Am I best borrowing the extra and paying it off completely or can i pay £2k off?

Cheers

Lewigreg081281

Can anybody shed any light?

Lewigreg081281

can anybody help with this thread please!

Lewigreg081281

Thanks for the advice so far, I took the loan out for 6k in June 2008 so just short of 2 year ago, it was over 5 years and i pay £120 a month.

I now have the opportunity of paying it off the settlement figure is £3988 or i go on paying £120 a month until June 2013.

Is it best to clear the loan or invest the 4k i now have?

Thanks

Lewis

Lewigreg081281

Can anybody help im on holiday soon so I want to get it sorted as soon as possible.

Thanks

property.advert

Lewigreg081281 wrote: »

Thanks for the advice so far, I took the loan out for 6k in June 2008 so just short of 2 year ago, it was over 5 years and i pay £120 a month.

I now have the opportunity of paying it off the settlement figure is £3988 or i go on paying £120 a month until June 2013.

Is it best to clear the loan or invest the 4k i now have?

Thanks

Lewis

I would ask for a reduction in the interest which you would pay. To June 2013 is 37 months which at £120 is £4440 or 36 months at £120 = £4320.

It looks like you have been offered a reduction but only you can work it out.

lisyloo

but only you can work it out

err actually no, any helpful sole can do the maths.
Be back in a tick.
I am assuming 36 months.

Lewigreg081281

so is £3988 not right for a settlement figure? is it possible to get this down?

thanks