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Savings vs Debt Repayments
BE95
Posts: 24 Forumite
Hi all,
I don't think this is the right place so feel free to move it, but nothing really fits?
I started my job in January, and since then borrowed £10k off my Dad. (Car, insurance (x2) etc) As i am very lucky i dont need to pay any interest so i just have to pay the £10k back. This year i paid £3k back so as of today i am only due to pay £7k back.
Original discussions being:
£5.5k due over 4 years
£1.2k due over 12 months
£350 due over 7 months.
I have been making my 2 year plan to end Dec 17, and i have come up with 2 options.
Option 1:
Pay off loan as original planned, leaving myself owing £3k at Dec 17 but having cash of £8.4k + HtB ISA (Maxed £200 per month)
Option 2:
Pay off loans as much as possible while leaving myself an emergancy fund, so by Jun 17, i will owe nothing but in December i will only have cash of £5.6k + HtB ISA (Maxed)
As the loans are interest free and will continue to be im not sure which would be the best option, because i want to build up my savings but at the same time give my dad back his money :P
Thank you in advance
I don't think this is the right place so feel free to move it, but nothing really fits?
I started my job in January, and since then borrowed £10k off my Dad. (Car, insurance (x2) etc) As i am very lucky i dont need to pay any interest so i just have to pay the £10k back. This year i paid £3k back so as of today i am only due to pay £7k back.
Original discussions being:
£5.5k due over 4 years
£1.2k due over 12 months
£350 due over 7 months.
I have been making my 2 year plan to end Dec 17, and i have come up with 2 options.
Option 1:
Pay off loan as original planned, leaving myself owing £3k at Dec 17 but having cash of £8.4k + HtB ISA (Maxed £200 per month)
Option 2:
Pay off loans as much as possible while leaving myself an emergancy fund, so by Jun 17, i will owe nothing but in December i will only have cash of £5.6k + HtB ISA (Maxed)
As the loans are interest free and will continue to be im not sure which would be the best option, because i want to build up my savings but at the same time give my dad back his money :P
Thank you in advance
#71 : Save £12k in 2016 : £3,644 / £6,000
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