Borrowing Vs Using personal savings fund

[bartooseboy]

Hi i am considering doing some minor refurbishments to my house (approx €8000). is it better idea to borrow the money for this or to use my personal savings? i have approx €12,000 in savings in my local credit union. I can get the loan at 6.95% APR. I am a single male with no dependants on a salary of €38,000pa. My only other loan at the moment is my mortgage which costs me 400 per month at the moment.

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[GeneralZod]

You could instead of paying the interest to the bank pay it to yourself by repaying your savings account by the same amount each month that you'd be giving the bank.

It only really makes sense to borrow it if you think you'll need the savings for an emergency when you don't have the option to borrow or you want to take a risk with it and invest it in something like shares in the hope the return will beat 6.95%.