To use or not to use?

Darrenluke

Advice please?

I have around 7k and growing saved up ready for my self assessment. (The one due July 2025!)🥳  

It’s in a 4% savings account 

Do I leave it alone OR

Do I use it towards debt and then “pay it back in”

I have two debts left.

Debt 1: 4% AA loan (around 14k left)
Debt 2: 10% Secured loan (around 65k!) I may try having this placed into our remortgage deal in 6mths time 

stu12345_2

can you fully guarantee that if you use your savings, you will definitely have enough saved up again for your self assessment bill?

plus if you do use it all you will then have nothing saved for emergencies,if you get hit with any suddenly 

plus are there any early loan settlement fees to pay?

CliveOfIndia

stu12345_2 said:

can you fully guarantee that if you use your savings, you will definitely have enough saved up again for your self assessment bill?

This would be my top question as well.  It's one thing to default on an unsecured loan.  Defaulting on a secured loan is substantially worse.  But you absolutely don't want to be mucking about with the tax-man, no matter what.

londoner2019

Hi - I have been in a similar position where I have my self assessment tax bill funds sat in an ISA.
I'd strongly suggest moving it to a 5%+ account - the extra 1% in interest will add up!

I'd also suggest NOT touching it... tax isn't the same as unsecured debt, and if you're worried at all about not being able to pay back into it in time, then it will be much more stressful. Personally I'd ringfence it and let it accrue 5% interest. I don't see that pot as "my" money as such (you'd not have it if you were PAYE).

Just my two cents on the issue! Good luck with whatever you decide.