Journey to £0 by 2020, with a few bumps along the way

enthusiasticsaver

You can't compare the interest of your loan and savings account as your savings account has about £15k and your loan £6k? You can only compare the rates. 

chelseablue

First day back in the office and was chatting to my boss who said looking likely they will be cutting back on staff, so not sure what to do now? 
Still pay off the loan or keep a load of money stashed away as savings 

enthusiasticsaver

I would do both.  Maybe overpay it by £500 a month while you are still working and continue to put £500 plus any unspent surplus in savings.  Getting rid of that monthly payment and keeping outgoings as low as possible is better if you do lose your job.  Lots of companies are saying that though but does not necessarily mean it will be you who goes.  You have £15k and presumably while working that will increase by £500 a month if you split your surplus between debt and savings.  I just think getting rid of that loan millstone is the best route to take. If by the end of the year you still have a job you could pay it off then with a lump sum? 

chelseablue

That’s a great idea!

Kakiste

Just a note to say that I've subscribed to your diary. You've done fantastically, paying off a massive amount of money in just a few years. Good luck with the last leg.

chelseablue

Kakiste said:

Just a note to say that I've subscribed to your diary. You've done fantastically, paying off a massive amount of money in just a few years. Good luck with the last leg.

Thank you

chelseablue

Just wondering if I should close my Virgin credit card? 
I currently have 3 credit cards, all £0 balance;

Barclaycard, credit limit £12,000 had since 2007 so keeping this one as its my longest open account plus I get cashback
Halifax Clarity, credit limit £8,000 had since 2018 and very good card for use abroad so will keep for whenever I'm on holiday
Virgin, credit limit £16,000 had since 2018, only got for the good BT offer at the time never used it to buy anything 

Is there any point keeping 3 cards or shall I just close the Virgin one? 
I would still have £20,000 of available credit over the other 2 if some emergency happened (after using savings of course) 

enthusiasticsaver

Yes I would close the Virgin card.  I cannot see any  point in keeping 3 cards open.  

chelseablue

Virgin card now closed

chelseablue

Pay day today, sent £500 to the loan, new balance £6,569 
I'll have to send a bit extra next month then I can be into the 5's