Repaying Loan and saving to Shares

D

ddmani

Registered User
Messages
21
I currently have an outstanding loan of approx €7,000

I am repaying 50 each week and also 75 to shares.

Would it make more sense to be paying more towards loan and less to shares?
Perhaps maybe just a nominal amount 10, 20 to shares?

Also loan was automatically approved so I believe shares can't be touched during loan repayment
 
Last edited:
Loan is 9% maybe,savings are 0.3% ish.Put the whole amount off the loan every week,and recommence saving when it is cleared off.
What shares do you have in CU?
.
 
The purpose of a Credit Union is pay off loan and save. Clearing off loan loses the incentive to save - defeats the purpose.
 
Why?
Clearing a loan achieves precisely the same result to you net savings position (well better obviously,because of the interest saving).
I then said recommence saving .
 
Because the purpose of the credit union has several objectives. Its harder to accumulate saving than pay off the loan. When the loan is paid off there is no incentive. Any way with the run off rates of loan books they wont need your savings to relend (which was another purpose).
 
If you pay the full 125 off the loan,it will be gone in about 60 weeks.
Then,you can continue saving €125 a week,debt free.
(I realise another poster disagrees with this approach,but that's what I would do)
 
You must log in or register to reply here.
Back
Top