Best way to invest 10k?

TracyA

Hi everyone. I have 10k. I want to know best way to invest. I have debt (prob around 10k) but I don't really want to just use this to pay that. I have no savings so would like to know I have this somewhere (even if I can't access for a number of years). I am 38, marries, one son, basic tax payer and live with my mother in law. Not much despensible income, so not saving any significant amount for the future. Would a cash ISA be the best option? I've looked at LISA and HTB ISA, but at the moment they aren't for me as I'm not currently, and I don't know if I will ever be, in a position to afford to pay a mortgage. Advice appreciated as I I've never had any money to invest before so know nothing about this stuff! Thanks in advance.

UncleK

Boring as it sounds, you are better to pay off your debt - BUT also - how about working out how much interest you currently pay on your £10K debt every month - and putting that away in a regular ISA - every month?

Mojisola

TracyA wrote: »

I have 10k. I want to know best way to invest.

I have debt (prob around 10k) but I don't really want to just use this to pay that.

Why not?

You are probably paying more in interest on the debt than you will make on the savings.

18cc

The first question to ask is what interest are you paying on your debt

the most you can expect to get from investing 10k in a savings account is about 1.5% if you go for instant access maybe 2.5 if you go for a very long fix

I would suspect the interest on your debt is several times larger than this

by far the most sensible thing to do is to pay off all your debt and tu if at all possible make sure you don't go into debt again

steampowered

You usually always want to pay off debt, because the interest you pay on debt is almost always higher than the interest you get on savings.

If you put the money into a cash ISA at 2%, you will get £200 a year interest.

If you are paying 8% interest on the debt, you will pay £800 a year in interest. So you would be £600 a year worse off.

The best thing to do is to pay off your debt. Then don't take any more debt for any reason at all - and work on saving regularly.

TracyA

Thanks guys for your suick responses... Looks like I'll be paying off debt... Thing is staying out of debt! I'm not so great at that... But thanks for the advice. :money: