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  • FIRST POST
    • jfscdavis
    • By jfscdavis 1st Sep 19, 12:44 PM
    • 1Posts
    • 0Thanks
    jfscdavis
    Repayment view
    • #1
    • 1st Sep 19, 12:44 PM
    Repayment view 1st Sep 19 at 12:44 PM
    Hello all,

    I have a decision to mate which I am finding very difficult , as much psychologically as rationally and so would be very grateful to hear other views.

    My situation is that I am in a position to repay my loan and it seems to make sense to do so on a financial basis. I have a loan taken out in 2014, which as I lived at home was only a tuition loan and due to subsequent income repayments is now at a balance of 26k. I earn a good amount already at the stage where I can put aside c. 2k a month and already have 9k saved in an ISA. I am in a career where it is very likely I will be earning 100k or so within the next few years (city law). Even if I eventually changed career, i think I would soon end up repaying the full amount plus the high interest through salary.

    The question is whether over the next year I should now allocate all of my saving capacity to repayment? I am finding it psychologically hard to repay an amount that could be going to waste, even if it seems to make sense. My other saving goal is a deposit, but I am not eager to tie myself into a mortgage too soon so that could wait.

    Any thoughts welcomed.
Page 1
    • Socajam
    • By Socajam 1st Sep 19, 1:23 PM
    • 501 Posts
    • 697 Thanks
    Socajam
    • #2
    • 1st Sep 19, 1:23 PM
    • #2
    • 1st Sep 19, 1:23 PM
    Why do you need to keep that monkey on your back.?
    Take 1K from what is left over and put that on the loan, the other 1K into savings for your deposit.
    Once that loan is paid off, you can save the 2K plus the money you were paying on the loan, thus savings over 2K per month.
    • JayRitchie
    • By JayRitchie 1st Sep 19, 8:48 PM
    • 284 Posts
    • 291 Thanks
    JayRitchie
    • #3
    • 1st Sep 19, 8:48 PM
    • #3
    • 1st Sep 19, 8:48 PM
    Hello all,

    I have a decision to mate which I am finding very difficult , as much psychologically as rationally and so would be very grateful to hear other views.

    My situation is that I am in a position to repay my loan and it seems to make sense to do so on a financial basis. I have a loan taken out in 2014, which as I lived at home was only a tuition loan and due to subsequent income repayments is now at a balance of 26k. I earn a good amount already at the stage where I can put aside c. 2k a month and already have 9k saved in an ISA. I am in a career where it is very likely I will be earning 100k or so within the next few years (city law). Even if I eventually changed career, i think I would soon end up repaying the full amount plus the high interest through salary.

    The question is whether over the next year I should now allocate all of my saving capacity to repayment? I am finding it psychologically hard to repay an amount that could be going to waste, even if it seems to make sense. My other saving goal is a deposit, but I am not eager to tie myself into a mortgage too soon so that could wait.

    Any thoughts welcomed.
    Originally posted by jfscdavis
    I'd accept the interest cost and build up savings. It may be advantageous to you to have a deposit in place to buy, or a decent sized emergency fund in case of ill health, unemployment etc.

    If you do want to repay the student loan do it when you can clear the whole balance and the timing suits your other life aspirations.
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