Looking for debt vs savings advice

Dippygoose

I’ve been attacking my debts with gusto over the last two years, and I’ve got to a point where I’ve started saving.

I’ve gone from £15,000 in debt to £7500 ish rounding up .

I have one big loan, and 3 little interest free ones?
I’ve got a big £7000 loan with interest 
Two £200 interest free and £100 also interest free.

Here’s my question.

Would it be better to settle these the smaller debts early and increase how much free money I have monthly or let the debt run their course and put the money I would’ve used in an emergency rainy day fund.

basically settle the little debts early or save in case of life emergencies?

redux

If they are interest free, there is no point in paying them back faster than required.

Putting as much as possible to the higher rate borrowing is the best way to save against future interest charges

Dippygoose

redux said:

If they are interest free, there is no point in paying them back faster than required.

Putting as much as possible to the higher rate borrowing is the best way to save against future interest charges

I currently have the government’s help to save scheme and a Zopa smart saver account.

So you think it would be better, just to let them run their course.

fatbelly

None of the saver accounts are likely to pay higher interest than the interest-charging loan will be charging

enthusiasticsaver

What interest rate are you paying on the loan?

There is  no point paying back the smaller interest free loans quicker

TheAble

There can be a psychological boost to paying off small balances though, for all they may be interest-free. It's not necessarily all about interest rates.

Dippygoose

enthusiasticsaver said:

What interest rate are you paying on the loan?

There is  no point paying back the smaller interest free loans quicker

The loan is on 2.8%.

enthusiasticsaver

If the loan is on 2.8% and you can get higher interest on savings then I would let the loan run its course and focus on saving instead.