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Paying off a loan with savings whilst saving for a house
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Hi MSE community!
Can I please request your help?
I have £8000 in savings earning 1.5% but have a £14000 outstanding loan balance at 4.9%. I know that its better to pay off debt before saving as the interest is higher on the debt but is this the same when saving for your first house. If I pay off the loan I will be losing all my savings and will put me back months/ years to buying a home.
Thanks for you advice.
Joshua
Can I please request your help?
I have £8000 in savings earning 1.5% but have a £14000 outstanding loan balance at 4.9%. I know that its better to pay off debt before saving as the interest is higher on the debt but is this the same when saving for your first house. If I pay off the loan I will be losing all my savings and will put me back months/ years to buying a home.
Thanks for you advice.
Joshua
0
Comments
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Your savings are effectively borrowed anyway, so you may as well pay them off and make yourself richer.
You can then save faster and buy a home more quickly.2 -
Thank you both! Will pay it off
1
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