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What would you do?

vics_1982
vics_1982 Posts: 194 Forumite
in Debt-free wannabe
Hi All,

It has been many years since i have posted on here but am very good at lurking. I am after some advice.

I have the debt below in my signature and have been slowly trying to build up my savings, with the help from a nice bonus this year and trying to be good I have nearly managed to save £9K. I was thinking i would pay the loan off and then with that money that i would normally pay to that i would chuck at the credit card thus making me debt free within the next 6-8 months. Would you do this? It would mean my savings would go down to £6K, have never managed to save so much in my life!!

Thanks in advance,
Vics x :)
Sainsbury CC - £1597.25 0% 18 mths left £37.57 Per month DD

Savings Goals 6500K / 10000K

Comments

  • pollyanna24
    pollyanna24 Posts: 4,390 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Yes, I would as I assume you are paying interest on the loan?
    Pink Sproglettes born 2008 and 2010
    Mortgages (End 2017) - £180,235.03
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  • mizmir
    mizmir Posts: 3,710 Forumite
    Debt-free and Proud!
    Assuming you can pay off the loan early you should get a reduction in the interest payable so I would definitely do that.
  • vics_1982
    vics_1982 Posts: 194 Forumite
    pollyanna24 wrote: »
    Yes, I would as I assume you are paying interest on the loan?

    Yes, interest is 4% so would save about £90 on total paying it earlier.
    Thanks for that.
    Sainsbury CC - £1597.25 0% 18 mths left £37.57 Per month DD

    Savings Goals 6500K / 10000K
  • mizmir
    mizmir Posts: 3,710 Forumite
    Debt-free and Proud!
    vics_1982 wrote: »
    Yes, interest is 4% so would save about £90 on total paying it earlier.
    Thanks for that.

    So unless you'll make more than that on your savings....
  • vics_1982
    vics_1982 Posts: 194 Forumite
    mizmir wrote: »
    So unless you'll make more than that on your savings....

    Point taken, cheers :beer:
    Sainsbury CC - £1597.25 0% 18 mths left £37.57 Per month DD

    Savings Goals 6500K / 10000K
  • Hiddenidenity
    Hiddenidenity Posts: 5,423 Forumite
    I agree pay it off.

    Just want to say well done :D
  • quintwins
    quintwins Posts: 5,179 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    Pay the loan off. you only need to pay £90 to clean your card before the 0% ends so set a dd up for that and the rest of the £169 send to your savings to replace the money borrowed.
    DEC GC £463.67/£450
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  • enthusiasticsaver
    enthusiasticsaver Posts: 16,102 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Almost certainly you are not getting 4% on your savings so yes I would pay the loan off. I agree with quintwins that as your credit card is 0% you may as well just pay £90 per month to clear within the interest free period and put the rest of any spare money from your loan payment to savings to replenish them.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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  • Debtslayer
    Debtslayer Posts: 447 Forumite
    Yes would definitely pay off loan and put that monthly payment into your savings.
    Increase your credit card payment so it's paid off in 18 months
    Current Mortgage 01.10.17 £113,513.88
    MFW Start Mortgage: £114,794.64
    Current MED: 2036:eek: Target MED: 2026 ;)
    Overpayment Target for remainder of 2017: £2,000
    Mortgage overpayment savings: £684.80
    MFW No 124 :money:
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