Seeking some sensible advice?
The key to financial power lies in your credit rating. If you plan to get a home loan, save money and get better credit starting now!
I'd pay off the loan first, but only after making sure there was no "prepayment" penalty.
Seeking some sensible advice?Pay the loan off first as you will definitely be paying higher interest on that than you will earn on your savings. Check with the loan provider first that there are no penalites for early redemption. If there are you will need to weigh this up. However you might want to save a little too, it's best to have enough cash to meet your commitments for at least a couple of months if, for example, you lost your job.
Seeking some sensible advice?Do you know what happens when people say that they'll start saving once they have paid off their debts? Five years down the line they are still in debt (usually even more in debt) and have no savings.
Set up a direct debit into a savings account for whatever you can afford. Even a small amount. Then, each year when you get a payrise increase your direct debit amount by around 20%-50% of your payrise. This way you will still feel the benefit of the pay rise plus your savings will increase.
Finally, do not ask for a cash card for 'easy' access to your savings cos do you know what happens? Two weeks into your pay month when you are skint and out (drunk) one Friday night you'll end up drawing your saving out!
Trust me - it happens to everyone.
Seeking some sensible advice?pay as much off a month as you can afford
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