Pay off loan or keep savings

amytomjerry

I have a credit union loan and a credit card that I wish to pay off and close within the near future.

I have a couple of thousand saved in credit union and if I wish, I can shortly use this to pay off the loan and close the loan account. Then with the new available funds I could tackle the credit card debt and have it cleared within five months.

Or, is it better to hold onto the savings, continue paying the credit union loan for the next six months and then close loan account.

One half of me is saying to clear short term debt as fast as possible and then the other part of me wants to hold onto savings as back up...

Just don't know what to do!! What do you suggest is the best option? Thanks...

Atlantic Dawn

Pay off your credit card first, then work on the credit union loan, it's far more interest than the credit union loan, probably twice as much.

Allinall

amytomjerry wrote: »

I have a credit union loan and a credit card that I wish to pay off and close within the near future.

I have a couple of thousand saved in credit union and if I wish, I can shortly use this to pay off the loan and close the loan account. Then with the new available funds I could tackle the credit card debt and have it cleared within five months.

Or, is it better to hold onto the savings, continue paying the credit union loan for the next six months and then close loan account.

One half of me is saying to clear short term debt as fast as possible and then the other part of me wants to hold onto savings as back up...

Just don't know what to do!! What do you suggest is the best option? Thanks...

Pay off the credit card first.

It will be costing you way more than the credit union loan.

When you have that cleared you can look at the rest.

Edit- Snap with A D

Trish56

Agree - pay off credit card first and in future clear in full by monthly direct debit as interest rate is over 20%.