Use savings to pay loan

the quiet fella

Hi all,
Long post coming up

Looking for a bit of financial advice please. I am not too sure if this is the correct forum to post in or not so mods might move to a better location if they want.

35 years old, living at home and have come to the conclusion that i don’t think i will ever be in a position to build/own my own home

Was living away but lost my job in the downturn, unemployed for year and a half and started a job six years ago on 3 day week for about 2 years. In full time employment for the last 4 years but current job pays less than what i was earning 8 years ago.

Would find it difficult to move away again as parents are getting older and may need to be around more often. Realistically if i changed jobs i would have an extra 75min commute each way per day but probably earn a better wage

Current situation is as follows

Savings 24k had 20k saved about 6 years ago – saved nothing for 5 years and have saved 4k in the last year.

Loan 32k in credit union over 5 years paying 150 per week (100 capital and 50 interest approx)

Earning €500 per week nett

Major expenses per week , loan, rent, food, broadband, phone, car. I find i am more of a less living from Friday to Friday on my wage.

Debating the following otions re loan

1) Continue as is and have paid in 5 years

2) Reduce savings to 10k and pay 14k lump sum off loan, continue paying 150per week and clear loan in 3 years

3) Reduce savings to 10k and pay 14k lump sum off loan, restructure loan to 100 per week and pay off over 5 years

4) ???

Would be very grateful for any imput

smelly sock

the quiet fella wrote: »

Hi all,
Long post coming up

Looking for a bit of financial advice please. I am not too sure if this is the correct forum to post in or not so mods might move to a better location if they want.

35 years old, living at home and have come to the conclusion that i don’t think i will ever be in a position to build/own my own home

Was living away but lost my job in the downturn, unemployed for year and a half and started a job six years ago on 3 day week for about 2 years. In full time employment for the last 4 years but current job pays less than what i was earning 8 years ago.

Would find it difficult to move away again as parents are getting older and may need to be around more often. Realistically if i changed jobs i would have an extra 75min commute each way per day but probably earn a better wage

Current situation is as follows

Savings 24k had 20k saved about 6 years ago – saved nothing for 5 years and have saved 4k in the last year.

Loan 32k in credit union over 5 years paying 150 per week (100 capital and 50 interest approx)

Earning €500 per week nett

Major expenses per week , loan, rent, food, broadband, phone, car. I find i am more of a less living from Friday to Friday on my wage.

Debating the following otions re loan

1) Continue as is and have paid in 5 years

2) Reduce savings to 10k and pay 14k lump sum off loan, continue paying 150per week and clear loan in 3 years

3) Reduce savings to 10k and pay 14k lump sum off loan, restructure loan to 100 per week and pay off over 5 years

4) ???

Would be very grateful for any imput

keep your savings is my advice.Take on a second job until you have made a big dent in the loan.

Spocker

+1 for keeping your savings. If you used them to back back the loan, and then diverted the 150/pw loan payment back into savings instead, it'd take about 3 years to get back to savings of 24k. If a second job to help pay down the load is an option, do that

goob20s

Keep 5000, pay down 19000 off the loan and pay the rest off aggressively