We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Student loan v ISA

rugby128
rugby128 Posts: 11 Forumite
in Loans
Hi

I have a student loan and i was just checking my balance which comes in at just under 18K. I was just wondering whether it would be best to start paying back my student loan, or wait until I have filled my ISA allowance before paying back my loan. Or maybe even taking some money out of my ISA to pay.

My earnings are still under the threshold so I am not making automatic payments.

What is everyones thoughts on what my best option would be?

Thanks

Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    I'd save (in an ISA and then elsewhere) providing the APR you can get on the savings is higher than the APR on the student loan, and it should be fairly easy to obtain better savings rates than that.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • JSR
    JSR Posts: 187 Forumite
    If you're planning to take on any other debt in the next few years (e.g. house purchase or car purchase) then do not pay back your student loan. Save your money for use as a deposit, it will save you a lot more in the long run.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.2K Work, Benefits & Business
  • 600.9K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture