Debt or Savings

Bambi234

Greetings all,

I have a bit of a conundrum regarding paying debts or having savings.

My debt that I owed Barclaycard was given to a DCA and I now owe them £4365 this is at 0%. Just another 3 yrs of repayments


I have an overdraft that will be nil in 4 months

I have a car loan that will be paid off in 5 months.

I have a loan that I took out from a credit union within work that will be paid off in 6 months. One this is paid off. I will have approx £1200 in my CU account which earns rate of interest, although not as competitive as the high street banks.

I know Martin (God bless you for this site) has said clearing debts with savings is the preferable choice unless you can get a savings account with a higher rate than your loan rate. In my situation I do. Added to this my employer takes care of the money coming out of my wages and going into my CU account. This way I don’t even think of it as my money and it makes it easier to save. And budget.

All opinions will be gratefully received.:D

Bambi:snow_grin

Bambi234

I need to add. I asked them what they would take in full and final settlement. The said they dont do deals so i will end up paying the full amount

SunderlandBlackCat

It only takes a few minutes to set up a mini cash isa or an online instant access savings account with a good interest rate & you can set up a standing order to regularly transfer money into it.

As you said if you can make more interest than you are paying out then why not but if you are going to do it then make the most of it & get the bestinterest rate available