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Save or Pay Off Debts?
us,thecat&thedebt
Posts: 859 Forumite
we are slowly on our way to getting in control of our finances everything is on instalments ect..
we are left with about £700per month + and at first had decided to pay off a debt each month...
however in 3 months time we wont have this surplus income to use, so should we continue to repay monthly instalments and save remainder (we are saving for a deposit for a house) or pay chunks of the debt..
we are currently paying no intrest at all on any debts so one thinks it may be best to save?????
we are left with about £700per month + and at first had decided to pay off a debt each month...
however in 3 months time we wont have this surplus income to use, so should we continue to repay monthly instalments and save remainder (we are saving for a deposit for a house) or pay chunks of the debt..
we are currently paying no intrest at all on any debts so one thinks it may be best to save?????
:beer: :j OFFICIAL DFW NERD NO 159 PROUD TO BE DEALING WITH OUR DEBTS:beer: :j
If you do a job well, people won't be sure you've done anything at all :rolleyes:
Must claim back bank charges!!!:rolleyes:
If you do a job well, people won't be sure you've done anything at all :rolleyes:
Must claim back bank charges!!!:rolleyes:
0
Comments
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While there is no interest on the debts, you may as well be earning interest on your savings.
Although it depends on how fast you are wanting to be debt-free.0 -
If you're paying no interest at all it would make sense to save in a high interest account. However if the debts are on limited 0% offers and will be transferred to a high rate at some point... make sure you pay off as much as possible before that time.Don't stress, relax, let life roll off your backs. Except for death and paying taxes, everything in life is only for now... Avenue QOfficial DFW Nerd Club - Member no. 003
Proud to have become debt free... and striving to keep it that way
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if the debt is interest free then it makes financial sense to save your money in the best savings account you can find.0
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thanks for the quick replies
all debts will be 0% for life of balance except sofas which expires in 30 months but will be paid by then...
just opened up a basic current account with hsbc and was thinking to open a regular saver and put £500 per month in there i think it pays 7 or 8 %:beer: :j OFFICIAL DFW NERD NO 159 PROUD TO BE DEALING WITH OUR DEBTS:beer: :j
If you do a job well, people won't be sure you've done anything at all :rolleyes:
Must claim back bank charges!!!:rolleyes:0 -
read the small print about the HSBC regular savings a/c , you only get 8% on the first 250 per month so also look at others saving a/c (halifax or abbey) for the other 2500
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