N
Newbie01
Guest
Hi, I am just wondering if anyone can give me some advice as to what would be the best course of action for me.
I have a fixed interest rate bank loan (original amount €20k), current amount owed is approx. €11.5k, the interest rate is 6.9%. If I keep paying my current monthly repayments, the loan will be fully paid in 2 years. I also have €15k in savings which are earning interest at 3%. I know that if I pay off my loan early, I will incur a penalty which I have worked out to be in the region of €800. As my 'savings' aren't really generating any money at the moment, would I be better off using that money now to pay off the loan in full? Is there any advantage/disadvantage to paying off the loan now (apart from the penalty!)
It's just frustrating looking at the large loan balance (which seems to be taking forever to clear), and my savings which are barely increasing at all!
Any opinions or advice would be greatly appreciated!!
I have a fixed interest rate bank loan (original amount €20k), current amount owed is approx. €11.5k, the interest rate is 6.9%. If I keep paying my current monthly repayments, the loan will be fully paid in 2 years. I also have €15k in savings which are earning interest at 3%. I know that if I pay off my loan early, I will incur a penalty which I have worked out to be in the region of €800. As my 'savings' aren't really generating any money at the moment, would I be better off using that money now to pay off the loan in full? Is there any advantage/disadvantage to paying off the loan now (apart from the penalty!)
It's just frustrating looking at the large loan balance (which seems to be taking forever to clear), and my savings which are barely increasing at all!
Any opinions or advice would be greatly appreciated!!