Pay off small loans or keep

THENORTHSIDER

I am due approx. €10k in the next few weeks. I can pay off 3 small loans which will use up the money or continue to pay off loans and keep the sum.

Any advice would be welcome, right now I'm thinking of paying off loans.

AlmightyCushion

Would you borrow 10K just to leave it in your savings account? Of course not. Leave a couple of grand in a savings account as an emergency fund then put the rest against the loans. When that is done you keep your monthly loan repayments the same as they are now and you should have the loans paid off in no time. Once all the loans are paid off, change the monthly loan repayment to a standing order to your savings account. So, soon enough you will be debt free, have a few grand in the bank and saving a few hundred every month without having to make any changes to your lifestyle.

Trish56

Good advice to hold maybe 3k in an emergency fund and then clear the highest interest loans first or a loan(s) where there is no penalty to clear early and increase monthly repayments to clear remaining debt faster.

daheff

Pay off most expensive debts first (credit card etc), then other loans. But remember when the money is gone to repay loans its gone....if you need cash again you would have to go through the whole application process and may not ultimately be approved.


As Trish says, keep a part of it for emergencies

THENORTHSIDER

Thank you for advice, makes sense to keep some for emergencies.