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20k house repair - loan advice?
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clueless_in_scotland
Posts: 4 Newbie
in Loans
Hi All, just looking for some advice please. I have a 20k essential house repair that cannot wait. I have 20k in savings but no more savings. Should I use this or get or a loan? Or combination of both? I don't want to remortgage and I don't have any other assets. I work full time and have a steady job so can start rebuilding savings. Any advice greatly appreciated. thank you.
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What are you earning on your savings?
It makes little financial sense to borrow money at 8% if you're only earning 4% on your savings, for example.
Some may wince at the idea of being left with no emergency savings, but if you have a steady job and can immediately start rebuilding savings, I don't see it as an issue. Should you encounter another unfortunate house repair in the short term, it sounds like you might potentially be able to take out a 0% card to finance it if needed.Know what you don't2 -
Thanks for the advice. Yes, the savings are in a 4% savings account, not locked into an ISA or anything like that. I think you are right. I will go with that. thanks again0
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Is there anything that you can put on a credit card? I'm wondering if you could get a 0% on purchases card to get you a bit of leeway on using the savings.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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Hi Brie, thanks for the reply. How does it work with 0% purchases on a card? Can you transfer money from a credit card to a bank account? Or do you withdraw cash and then pay into your bank account? How do you then go about paying it back? I take it you need to get it down to £0 before the 0% deal ends? thanks0
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Use your savings and and stay out of debtset up a standing order when you get paid to auto transfer (what the loan would have been every month) and before you know it you will have your 20k back in no time without paying a penny in interest... stay away from banksthe level of discipline you have shown by accumulating the 20k is commendable, when most people just live pay check to pay check well done...thats why i would do you are in effect loaning yourself the moneyall the best
“People are caught up in an egotistic artificial rat race to display a false image to society. We want the biggest house, fanciest car, and we don't mind paying the sky high mortgage to put up that show. We sacrifice our biggest assets our health and time, We feel happy when we see people look up to us and see how successful we are”
Rat Race1 -
Hi Ratrace - thank you very for the advice. Will do that.1
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