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Fogmeister
I haven't seen my friends in so long
Joined: Thu Apr 23, 2009 7:35 pm
Posts: 6580
Location: Getting there
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If you had several places that could do with a cash injection and you somehow recieved some cash (amount = £X) what would you do with it?
Loan with £X remaining.
Car needing £X/3 spending on it.
I could clear the remainder of the loan completely but I'd still need to spend the money on the car. But then I wouldn't be paying out each month on the loan so could save for the car.
I think I know the answer I just wanted to sanity check my thinking.
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| Fri Sep 02, 2011 8:45 am |
 
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Spreadie
I haven't seen my friends in so long
Joined: Fri Apr 24, 2009 6:06 pm
Posts: 6355
Location: IoW
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Depends how bad the car is, but I would kill the loan first.
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| Fri Sep 02, 2011 8:48 am |
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james016
Doesn't have much of a life
Joined: Tue May 05, 2009 5:52 pm
Posts: 1899
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Put the money towards the loan.
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| Fri Sep 02, 2011 9:01 am |
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JJW009
I haven't seen my friends in so long
Joined: Thu Apr 23, 2009 6:58 pm
Posts: 8767
Location: behind the sofa
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As a general rule, always pay debts off first if it will save you interest payments.
Of course it rather depends if the car will keep going, and if you need the car to get to work.
_________________jonbwfc's law: "In any forum thread someone will, no matter what the subject, mention Firefly." When you're feeling too silly for x404, youRwired.net
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| Fri Sep 02, 2011 9:03 am |
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Fogmeister
I haven't seen my friends in so long
Joined: Thu Apr 23, 2009 7:35 pm
Posts: 6580
Location: Getting there
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The car is fine at the moment but probably won't pass the next MOT (in 6 months).
Thanks for the replies though. I thought the same thing.
Bye bye loan!
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| Fri Sep 02, 2011 9:21 am |
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Amnesia10
Legend
Joined: Fri Apr 24, 2009 2:02 am
Posts: 29240
Location: Guantanamo Bay (thanks bobbdobbs)
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Also once the loan is cleared it will free up that sum each month for the car, and after that for saving. _________________Do concentrate, 007... "You are gifted. Mine is bordering on seven seconds." https://www.dropbox.com/referrals/NTg5MzczNTkhttp://astore.amazon.co.uk/wwwx404couk-21
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| Sat Sep 03, 2011 2:08 pm |
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E. F. Benson
Doesn't have much of a life
Joined: Wed Sep 16, 2009 8:42 am
Posts: 798
Location: land of the free, Bexhill-on-Sea
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I once had a loan from Lloyds. everyone said pay it off it will save money on the interest. Guess what, the tricky little blighters had it so that I had to pay the interest too. So there was no benefit from paying off early, but as the woman said at the time there was no penalty either. That left a bad taste in my mouth I can say.
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| Sat Sep 03, 2011 4:35 pm |
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Fogmeister
I haven't seen my friends in so long
Joined: Thu Apr 23, 2009 7:35 pm
Posts: 6580
Location: Getting there
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Thankfully I checked when I got the loan and I made sure to get one I could pay it off with no penalty. --- I am here: http://maps.google.com/maps?ll=53.851223,-1.530933
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| Sat Sep 03, 2011 10:03 pm |
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E. F. Benson
Doesn't have much of a life
Joined: Wed Sep 16, 2009 8:42 am
Posts: 798
Location: land of the free, Bexhill-on-Sea
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but will you still have to pay the interest of the full term? If so there is no point in early repayment to my mind.
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| Tue Sep 06, 2011 11:36 am |
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Amnesia10
Legend
Joined: Fri Apr 24, 2009 2:02 am
Posts: 29240
Location: Guantanamo Bay (thanks bobbdobbs)
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No many will reduce the interest payable. _________________Do concentrate, 007... "You are gifted. Mine is bordering on seven seconds." https://www.dropbox.com/referrals/NTg5MzczNTkhttp://astore.amazon.co.uk/wwwx404couk-21
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| Tue Sep 06, 2011 11:56 am |
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Fogmeister
I haven't seen my friends in so long
Joined: Thu Apr 23, 2009 7:35 pm
Posts: 6580
Location: Getting there
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No, the amount left outstanding on the loan (ie the amount it says is the balance on my online banking) is all I have to pay to close the loan. (plus however many days interest since the last interest was added. it was the most flexible loan I was able to find at the time as I wanted to be able to pay it off early and knew that would be able to somehow. I have already made several lump sum payments into it. --- I am here: http://maps.google.com/maps?ll=52.982561,-2.660368
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| Tue Sep 06, 2011 1:25 pm |
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E. F. Benson
Doesn't have much of a life
Joined: Wed Sep 16, 2009 8:42 am
Posts: 798
Location: land of the free, Bexhill-on-Sea
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glad for you 
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| Tue Sep 06, 2011 5:06 pm |
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MrStevenRogers
Spends far too much time on here
Joined: Fri Apr 24, 2009 9:44 pm
Posts: 4860
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i too am finishing a loan 3 months early on friday (pay day)
thats 2 big bills gone this year (catalogue finished then closed and the loan)
feels good to get out of debt ...
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| Wed Sep 07, 2011 8:06 am |
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