Should I pay off my littlewoods balance in one go?

BrettMorganxD

I am currently paying £60 a month to littlewoods (which I can afford) but there is now only £460 left on it, and as now I am working 2 jobs which means I will be bringing home around £1,000 a month.

If you look at my other threads I am saving for things and £60 may not seem like a huge amount (which it isn't) but I am thinking when I get my first wage from my main job I may just pay it off all in one go.

Is this wise?

pigsmightfly

BrettMorganxD wrote: »

I am currently paying £60 a month to littlewoods (which I can afford) but there is now only £460 left on it, and as now I am working 2 jobs which means I will be bringing home around £1,000 a month.

If you look at my other threads I am saving for things and £60 may not seem like a huge amount (which it isn't) but I am thinking when I get my first wage from my main job I may just pay it off all in one go.

Is this wise?

If you can afford to do it I would say yes and get rid of it and also avoid having more interest to pay on the balance.

I used savings etc. to clear a lot of my debts and feel so much better like small weights are being lifted from my shoulders one at a time.

Plus the sooner you clear it and close the account (presuming you are doing this) the quicker it is on its was to being removed from your credit file

quintwins

if your still in the interest free period i would keep going as you are, if you pay it off asap

BrettMorganxD

pigsmightfly wrote: »

If you can afford to do it I would say yes and get rid of it and also avoid having more interest to pay on the balance.

I used savings etc. to clear a lot of my debts and feel so much better like small weights are being lifted from my shoulders one at a time.

Plus the sooner you clear it and close the account (presuming you are doing this) the quicker it is on its was to being removed from your credit file

I took in out in order to boost my credit rating. (to show I can pay things off etc).

I wont be closing it down I may need something in the future urgently again

rising_from_the_ashes

If it's interest free I'd keep going as you are (and maybe put the extra money aside somewhere so it's available should you need it) - if you're paying interest, I'd clear it when you get paid.

Pollycat

I agree with quintwins & rising from the ashes - if you're not paying any interest you're not gaining anything by paying it off in one go.

Do you have a cash ISA?

If not, consider opening one, you can get decent interest of around 3% (some pay interest monthly) and immediate access.

Beware though, most organisations offer a bonus % for (usually) a year and the interest rates drop to around 0.5% after that so you need to be on the ball and move your money to somewhere offering better rates.

You'll find more info on the main MSE website.

turbo.jet

What is the interest rate? And also, what interest rate are you getting on your savings?

The golden rule is pay off your debts with savings, as the interest you make on savings is less than the interest charged on debts, HOWEVER, the exception is if the debt is 0%, in which case you'd be better off saving the money in a high interest account and then paying it off as soon as the debt starts attracting interest. Remembering of course that you must make at least the minimum payment.

Sorry if this is already obvious to you.

Well done on the second job. I'm looking for one too.