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Should I repay loan or save?
Hi! After some advice please.
I have a 5 year loan with just over 2.5 years to go. I am very lucky that at this moment I have some money that I could use to clear the loan- the resettlement figure is about £400 less than if I continued payments.
Should I pay-off the loan or continue to save the money?
Many thanks
I have a 5 year loan with just over 2.5 years to go. I am very lucky that at this moment I have some money that I could use to clear the loan- the resettlement figure is about £400 less than if I continued payments.
Should I pay-off the loan or continue to save the money?
Many thanks
0
Comments
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My choice would be to clear the loan then put the loan payments into a savings account to replenish the cash used to clear the loan.0
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Can you save or invest at a better rate of return than the loan interest?
If so there's no hurry to pay it off early. If on the other hand the loan interest is something like 5 or 7% I'd say pay it off fairly soon.0 -
unless you getting a savings interest of over 3%, id say pay off the loan, then start saving. have a look around for some accounts that offer a good return on your savings0
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