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What to do with left over loan cash
Boudica
Posts: 102 Forumite
Hi all
I got a loan for a newer car and I plan to have about £1000 left over. The cost of the car is £4500 but I plan to beat the dealership down to £4000 if I can. I intend to haggle as much as possible. The interest rate was higher for borrowing £4500 than £5000. This will leave me with some extra cash.
The problem is I don't know what to do with it. I can't pay it back off the loan due to terms and conditions. I was thinking of paying off a remaining bill or putting it into a high interest savings account. I don't really want to spend it on anything as I see it as buying stuff on tick. My rule is that loans are for a specific purpose such as a car, not for luxuries. I work to a really tight budget so for everything else I pay cash only.
Does anyone have any ideas please? I really want to make the additional cash work for me.
Thanks
I got a loan for a newer car and I plan to have about £1000 left over. The cost of the car is £4500 but I plan to beat the dealership down to £4000 if I can. I intend to haggle as much as possible. The interest rate was higher for borrowing £4500 than £5000. This will leave me with some extra cash.
The problem is I don't know what to do with it. I can't pay it back off the loan due to terms and conditions. I was thinking of paying off a remaining bill or putting it into a high interest savings account. I don't really want to spend it on anything as I see it as buying stuff on tick. My rule is that loans are for a specific purpose such as a car, not for luxuries. I work to a really tight budget so for everything else I pay cash only.
Does anyone have any ideas please? I really want to make the additional cash work for me.
Thanks
Lightbulb moment 2/1/07
First Direct £2500 loan
John Lewis £200 (card not used since July 2005)
HFC £350
Co-Op £5000 (car loan - disabled so needed new wheels as previous car is now scrapped)
John Lewis £200 (card not used since July 2005)
HFC £350
Co-Op £5000 (car loan - disabled so needed new wheels as previous car is now scrapped)
Total debt £8050
DFW by 2010
0
Comments
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I think your idea of keeping the extra £1000 in a high interest savings account sounds great! Thats what I'd do, then it's always there if any big expences come along and take you by surprise!Lightbulb Moment: Feb 2007 :idea:
Starting Debt:£4737.49
Ebay Sales: £154.40 Pigsback: £15.20 Coin Jar: £18.90 Savings: £212.12
Current Goal: Save £365 To Pay Off HFC by March 26th Goal To Date: £365.52 ~ Just waiting for paypal funds to clear
Next Goal: Save £200 extra to pay towards car loan by 31st March.
Proud To Be Dealing With My Debts!0 -
I could perhaps pay off what I allegedly owe for my daughters school fees just to get rid of them. I'm convinced that i've been fleeced somewhere but, because they won't explain the way they do things properly and openly, i've got no way of proving anything.
I'm still open to ideas though.Lightbulb moment 2/1/07First Direct £2500 loan
John Lewis £200 (card not used since July 2005)
HFC £350
Co-Op £5000 (car loan - disabled so needed new wheels as previous car is now scrapped)Total debt £8050
DFW by 20100 -
My best advice would be to compare interest rates....
If you have debts (i.e. credit cards or overdrafts) with higher interest rates (often thse can be around 14% or more) than you would get in a savings account (best at around 5.5%) then pay the debts off first. There's no poiint putting it in a savings account when the moeny would save you more if you cleared some debts charging you higher interest.
If you decide to go for the savings route, stick the money in an ISA and get tax free interest. Make sure you can get instant access and don't get penalised for withdrawals. "We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein0 -
I was thinking about that last night. I will probably pay off the smaller ones which will leave additional cash to pay off the disputed school fees. If i'm proved right with them i'll get the cash back anyway.
I'll see how much i'm left over with after I get the car. I certainly don't intend to pay the full price
Lightbulb moment 2/1/07First Direct £2500 loan
John Lewis £200 (card not used since July 2005)
HFC £350
Co-Op £5000 (car loan - disabled so needed new wheels as previous car is now scrapped)Total debt £8050
DFW by 20100 -
id definately try and pay off all the little bills and put a bit aside for emergencys:xmastree:Is loving life right now,yes I am a soppy fool who believes in the simple things in life :xmastree:0
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