We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Paying off a loan with savings whilst saving for a house
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
-
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
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.2K Work, Benefits & Business
- 603.9K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards