Use savings or keep paying loan

[EvenStevens]

Just interested on feedback on a loan situation.

I have a 10k loan out for a car with my CU-6.7% for 3.5 years. No penalty for early payback. No other debt apart from mortgage

I have about 9300 in savings. 3k I had ringfenced as contingency so don't really want to touch it.
Initially I thought I'd be happy to pay the loan off for that length of time as I get into it it seems like a long way to go to hve it paid off. Probably sounds crazy but I wanted to keep savings also as I have few things I want to do in house, new boiler is the main thing. Everything else is not urgent.

So basically is it a no brainer to sink my savings into the loan and pay back quicker? Just hard to build up savings like that.

 

[Pinoy adventure]

It makes no sence paying 6.7% on the loan as you have 9300 sitting there gaining nothing.
Pay the 9300 off and start building up savings once again

 

[Sarenco]

So basically is it a no brainer to sink my savings into the loan and pay back quicker? Just hard to build up savings like that.

Yes.

You are effectively borrowing money @6.7% to put it in a deposit account earning nothing.

 

[Brendan Burgess]

And with a good credit record with the Credit Union, if you do need money urgently, they will lend it to you.

Brendan

 

[EvenStevens]

Thanks for all the feedback

 

[time to plan]

And with a good credit record with the Credit Union, if you do need money urgently, they will lend it to you.

Brendan

And get a credit card for emergency. Best case you never need or use it. Worst case you have an admittedly expensive line of credit.