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€500 to spare

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  • 22-05-2012 3:09pm
    #1
    Honey-ec
    Closed Accounts Posts: 5,844 ✭✭✭


    Trying to decide whether to throw it against a personal loan I have with AIB (the balance of which is currently €900), or use it to open a credit union account.

    Any opinions?

    Thanks!


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    #2
    snubbleste
    Banned (with Prison Access) Posts: 31,117 ✭✭✭✭snubbleste


    Open a credit union account with €1 and pay down the loan with €499.


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    #3
    highgiant1985
    Registered Users Posts: 1,777 ✭✭✭highgiant1985


    snubbleste wrote: »
    Open a credit union account with €1 and pay down the loan with €499.

    just to add to this

    The reason hes suggesting you pay down the loan is you're paying interest on the loan and that would be higher than any interest you'd make on savings.

    One assumption this is making though is that there is no penalty for paying down the loan early. Assuming theres not then yes pay down the loan.


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    #4
    coylemj
    Registered Users Posts: 25,411 ✭✭✭✭coylemj


    If you have a good credit rating with the bank and therefore can get access to cash in an emergency then pay off the loan. The loan needs to be at a variable rate, otherwise there will be penalties for paying it off early.


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    #5
    ted1
    Registered Users Posts: 23,489 ✭✭✭✭ted1


    Last minute holiday...


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