Credit Union Loan Query

faolteam

Registered User
Messages
189
I have a loan with a Credit union its nearly paid off, i was at first paying over the original agreed price but one day the Teller in the CU said to me your paying to much back.

So i decided to cut it way down which was fine for a few years but then i started going into arrears cause this agreed price had caught up with me and now i must pay back the agreed price of a 100 euro a week,


I only owe 2000 euro should i just pay this back now or do it for 20 Weeks x 100 euros
 
well the longer you have the loan, you get tax relief
You're making a classic mistake.

You get 2 tax reliefs:.
1. Capital allowances (depreciation). You'd get this even if you'd both the car with cash. The loan has nothing to do with it.
2. Loan interest relief. You get to claim any business interest as an expense. If you've no loan, there's no interest and no relief. But even after tax relief there's an expense. So if you've the money lying around, I'd just pay it off.
 
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