AndyKent
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Registered: 3rd Sep 05
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I've got finance on my Corsa at the moment which I've been paying off for a year and now got a decision to make......
To start with, the finance is 0% so not costing my anything but I now have enough saved to pay off the remaining £4k or so.
Would you prefer to pay it off, clear the debt and save a load more money a month, or keep the £4k in the bank (its in an ISA at the moment) and keep paying off for the other two years.
Don't like thinking of having a debt, but also on 0% not really in a hurry to pay it back either......
What would you lot do?
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Corsa_Joel
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Registered: 3rd May 07
Location: Dunstable, Bedfordshire
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If you can afford to pay it off now get it paid off mate, will be better in the long run.
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ashbishop90
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Registered: 19th Mar 07
Location: Leicestershire
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keep the finance whilst its while its 0%.......
keep the 4k in an ISA
you'll be cutting down the amount you owe and your money in the bank will go up
edit: but the above post is a fair point, end of the day its up to you
[Edited on 30-08-2007 by ashbishop90]
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Rob H
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Registered: 28th Oct 00
Location: Staffordshire Drives: Astra SRi
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Gain the money on the £4k you've got, rather than "let them off the hook" by paying off the finance. It doesn't cost you anything so why be in a hurry to pay it back?
Should anything happen, you've always got the savings money to pay back the loan anyway, and you'll still be quids in by what you've made off it
[Edited on 30-08-2007 by Rob H]
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strick206
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Registered: 12th Apr 07
Location: Wigan Drives:Integra DC5
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your savings are gaining interest, so making you money
for as long as it is interest free pay it off monthly, the second you start paying interest, pay it off
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ClaireF
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Registered: 1st Nov 05
Location: hurlford, scotland Drives: corsa again
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get it paid off i would
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Marc
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Registered: 11th Aug 02
Location: York
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Surely you realise option 1 is the way to go!!!
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AndyKent
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Registered: 3rd Sep 05
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Glad we've come to a unanimous decision then 
Not a problem paying it off and would leave all my pay for myself but then I loose all that interest on my current savings...........arrrgh......I don't know 
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Marc
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Registered: 11th Aug 02
Location: York
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You'll soon get your savings back up again provided you're sensible with your money.
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strick206
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Registered: 12th Apr 07
Location: Wigan Drives:Integra DC5
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can you afford to live comfortably when your paying so much a month? if yes, keep paying monthly
as the finance is not costing you a penny
So it is logical to keep the savings in the bank and let them increase in value, especially in an ISA.
Keep paying it monthly, you'll be financially better off, and have a decent sum of money once its fully paid to deposit on a house, or for a new car etc
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strick206
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Registered: 12th Apr 07
Location: Wigan Drives:Integra DC5
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quote:
Originally posted by Marc
You'll soon get your savings back up again provided you're sensible with your money.
True, but he'll be losing out on money which will be increasing that is sat in the bank already
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strick206
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Registered: 12th Apr 07
Location: Wigan Drives:Integra DC5
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I'm a training financial accountant and financial advisor too, would be the logical route to take imo
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Robbo
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Registered: 6th Aug 02
Location: London
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The ONLY reason you would pay off the finance in this example is if you needed to free up monthyl cashflow for other regular repayments where an ISA isnt the best as you dont want to keep transferring money in and out and therefore using the subscription limit
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Robbo
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Registered: 6th Aug 02
Location: London
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quote:
Originally posted by strick206
I'm a training financial accountant and financial advisor too, would be the logical route to take imo
Qualified Accounting Technician, Qualified Chartered Certified Accountant 
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Marc
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Registered: 11th Aug 02
Location: York
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quote:
Originally posted by strick206
True, but he'll be losing out on money which will be increasing that is sat in the bank already
yes, but effectively he doesn't have the money in the bank as one day it will need paying off. Provided he budgets for paying the loan off he could leave the money where it is.
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Robbo
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Registered: 6th Aug 02
Location: London
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quote:
Originally posted by strick206
can you afford to live comfortably when your paying so much a month? if yes, keep paying monthly
as the finance is not costing you a penny
So it is logical to keep the savings in the bank and let them increase in value, especially in an ISA.
Keep paying it monthly, you'll be financially better off, and have a decent sum of money once its fully paid to deposit on a house, or for a new car etc
Yep  Unless as sadi, you have other monthly commitments where ISAs are not ideal
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strick206
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Registered: 12th Apr 07
Location: Wigan Drives:Integra DC5
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quote:
Originally posted by Robbo
quote:
Originally posted by strick206
I'm a training financial accountant and financial advisor too, would be the logical route to take imo
Qualified Accounting Technician, Qualified Chartered Certified Accountant
where i hope to be in a few years
your point is what i was trying to get accross, if he is struggling because he has to pay finance every month, pay it off now
but with him saying he has managed to save 4k doesnt sound like he is struggling tbh, so should keep the money in the ISA
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AndyKent
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Registered: 3rd Sep 05
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Enough willy waving boys
I guess if I'm not struggling to pay it off it would be logical to just carry on paying. I've managed to save a bit per month so far so could just carry on like that. Like strick says tho, the money in the bank isn't really mine until the car is paid off......
Even so, I think I'll keep paying.
Cheers
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Robbo
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Registered: 6th Aug 02
Location: London
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Yep, if you can afford to then keep payign but as Marc said, keep in mind that you may need the savings to pay off that loan in future
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strick206
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Registered: 12th Apr 07
Location: Wigan Drives:Integra DC5
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quote:
Originally posted by aPk
Enough willy waving boys
I guess if I'm not struggling to pay it off it would be logical to just carry on paying. I've managed to save a bit per month so far so could just carry on like that. Like strick says tho, the money in the bank isn't really mine until the car is paid off......
Even so, I think I'll keep paying.
Cheers
good choice
Once it is paid off and you've got all that in savings, you'll be in a better position, plus the interest your earning is in effect, meaning your paying less for the car
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AndyKent
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Registered: 3rd Sep 05
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Yes. I've not done bad to save that amount (but I did get some unexpected income which helped a lot) so saving would be the best bet. Would leave me in a good position that I could always pay off the loan in an emergency but not costing me anything in the meantime......
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drax
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Registered: 5th Feb 05
Location: Sittingbourne, Kent
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Always have more money avaliable than you think you need. You cant predict why or when you might need it.
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Tim
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Registered: 21st Apr 00
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Even if you couldn't afford the monthly payments, you'd be better off using your savings to make the monthly payments and gain from the interest (while paying no interest on the borrowed amount).
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strick206
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Registered: 12th Apr 07
Location: Wigan Drives:Integra DC5
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quote:
Originally posted by Tim
Even if you couldn't afford the monthly payments, you'd be better off using your savings to make the monthly payments and gain from the interest (while paying no interest on the borrowed amount).
With that the money would be better off in a high interest account, as then it wouldnt suffer from the maximum you can pay in unlike the ISA
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