Interest free bank 'loan' or am I fooling myself?

redpete

With loans and CC debt that you are paying interest on, your 'hard-earned savings' aren't really yours. You have borrowed money from the lender and are paying them more than you are earning on the savings.

(IMO) Holidays to Thailand shouldn't be considered when someone has high interest CC debt.

Clive_Woody

imoneyop wrote: »

I think he's been smoking something "herbal".

Probably from Thailand.

Thrugelmir

The answer to the original question is that you are fooling yourself!

Holidays are soon forgotten. Debt isn't.

Les_Debt

gb12345 wrote: »

What the !!!! are you on about?

I'll try and explain it more simply later this month when I Get paid again,
I have an amount taken out by DD to pay the loan, (last month's payment was £94, this months would be approx. £92)

by about this time in the month all my payments have left my bank account so I know almost to the penny how much surplus I will have from my previous wage (approx. £630) (I had a good month in August doing extra shifts.)

a couple of days ago I made an arbitrary payment of £300 from that potential surplus off the loan.
Ill leave it at that for the moment and come back and clarify more when I get my next wage.!:beer:
Cheers LD

Les_Debt

imoneyop wrote: »

I think he's been smoking something "herbal".

In Thailand I don't smoke, but I do get smoked.:shocked:

gb12345

Les_Debt wrote: »

I'll try and explain it more simply later this month when I Get paid again,

I can hardly wait - the suspense is killing me

Les_Debt wrote: »

a couple of days ago I made an arbitrary payment of £300 from that potential surplus off the loan.

So all you've achieved so far is repaying a bit of your loan early and saved yourself a few quid in interest - no free money from the bank.

I think you need to rethink your strategy Einstein, as you're clearly deluded if you think that you have received an interest free loan.

lynz68

All you're doing is paying your loan off early not rocket science but certainly not interest free.

forgotmyname

Its OK saving money. But your not saving as much as you could.

Your paying more interest to companies than you need to.


Why save £200 at 3% or less interest and then pay interest on a CC at 12%?

Your losing money not saving. Pay the loans off ASAP and your saving the interest they would have charged.

opinions4u

Reducing you debt means you are charged less interest.

Is this what you mean?

If so, you're right. But wasn't it always obvious?

27col

Yet another newbie post that has made my head hurt.