Advice required on which way to play savings v paying debt

JBL2000

Hi Everyone,

I am looking for a little advice re: what to do regards paying v savings in the current environment.

At present, aside from mortgage I have the following:

£5,871.13 loan @ 5.x %

£1735.98 Credit card @ 0%

The total comes in at £7607.11

There is no issues with repayment. It's a case of what to do in this CV19 world. As of end of the month I will have 4 months of expenses in cash in my bank account.  I did a Santander zero interest, zero cost BT, just to cut the interest. I am paying it off so as the entire balance is paid off before the 0% ends.

My question is.. Do I take the £1735.98 out my rainy day fun and pay off the CC? My job is quite secure, Doing so increases my available cash by a noticable percentage. I am fully employed in a large financial organisation and we as a company have just had a year on year increase in business. We have all been told that our jobs are safe whilst all this is going on as well.

Part of me says do it, part of me says let it run down and just horde the cash.

Thoughts?

Willing2Learn

Hi there and welcome to the forum 

In the current climate I would recommend you keep the money stashed away as savings.  The future is uncertain right now.  Just make sure you keep budgeting for your contractual obligations with both the card and the loan.  Once things have settled down a bit, then you could reassess your options.

Normally I would recommend the opposite.  It is just that I feel it better to play it safe at the moment. 

EimearF

Agree with Willing2Learn. The uncertainty right now means stockpile cash, once this is over you can make a lump sum payment. 

JBL2000

Thanks! I was thinking the same. I was just after a bit of verification. At least if we get to the end of next year I will have a lump sum to pay the debts off in full!

enthusiasticsaver

I think if you can repay the card before the 0% interest deal finishes then you should keep the savings intact.