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Advice - Paying off Debt / Saving

  • 26-01-2018 1:28pm
    #1
    Saucey-Susie
    Registered Users, Registered Users 2 Posts: 162 ✭✭


    Hi all.  I'm looking for advice re paying off debt/saving.  I have about 15k in a loan Im currently paying off and I have 1k on my Credit Card I am paying off too, plus I want to start saving for a mortgage.  Would you advise paying off the standard loan amount and once the credit card is clear, putting that money into a savings account ontop of regular savings.  Or would you use the money that you were using to pay off the credit card to bring down the loan, to have it paid off slightly quicker.


Comments

  • #2
    beechwood55
    Registered Users, Registered Users 2 Posts: 532 ✭✭✭beechwood55


    I would prioritize paying off the highest interest loan - presumably the credit card.


  • #3
    draiochtanois
    Registered Users, Registered Users 2 Posts: 2,655 ✭✭✭draiochtanois


    This post has been deleted.


  • #4
    Tenigate
    Closed Accounts Posts: 849 ✭✭✭Tenigate


    AIB were helpful talking to me about my mortgage query. In addition to gross income, the other 2 factors are evidence of savings preferably in a dedicated savings account, and the discretionary income you're left with after paying your bills.

    Aggressively paying down a loan in such a way that leaves you with no proof of savings, while you still technically have an outstanding liability, isn't going to look great.

    To me, the best option is to tighten the belt, cut up the credit card, and start a dedicated saving account. The approval in principle calculators can then help you find out what you can borrow given your current salary and your current loan repayment.


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