Uni student struggling

arr2000

I’m a uni student with another 2 years to pay off my car at 163 a month with 10.9% interest. I’m starting to struggle with not being able to work as much with placements etc..  

I have £6610 in an ISA account which is me saving for a house after finishing uni in a few years. I was thinking of withdrawing money to pay my car settlement, which would leave me with £2000 in the ISA account. 

I don’t know what I should do😣

Emmia

Can you sell the car? Do you need the car?

I ask, as the costs of running a car - MOT / Tax / insurance can also be hefty - not Student budget friendly

Brie

Good that you are thinking of this before it's a huge problem. 

I don't know much about ISAs but wonder if you can make a series of withdrawals to cover the payments while you think things through?  

Have you asked for a settlement figure for the car loan?  If you settle it sooner rather than later it should be less than £163 x 24 months as there should be less interest to pay.

arr2000

Emmia said:

Can you sell the car? Do you need the car?

I ask, as the costs of running a car - MOT / Tax / insurance can also be hefty - not Student budget friendly

I definitely need the car for commuting to and from university, my placements and my work. The tax on the car is free and my insurance isn’t too bad either. It’s just the payment for my actual car that I would be struggling with - not running the car

arr2000

Brie said:

Good that you are thinking of this before it's a huge problem. 

I don't know much about ISAs but wonder if you can make a series of withdrawals to cover the payments while you think things through?  

Have you asked for a settlement figure for the car loan?  If you settle it sooner rather than later it should be less than £163 x 24 months as there should be less interest to pay.

So the settlement amount is £3400, but if I was to pay it monthly I would have £3800 

LightFlare

Unless you you are getting a return of
 10% on the ISA - for me it’s a bit of a no brainer

Be disciplined though and put what you can back in