 Which has more value to you: 50 pennies, 10 nickels, 5 dimes, or 2 quarters? |
| Yes, I realize they all sum to 50 cents, but there will be one that you would rather like.... |
|
 What could happen to my boyfriend? |
Im an international student in the UK. I do apologize if my English isn't clear enough.
One of my boyfriend's(British citizen) close friends has stolen 9000 pounds from my ... |
|
 Did you spend any money today? |
| Do you spend money every day? Or not? I didn't spend any today, too busy working and doing stuff at home.... |
|
 How to raise money by the end of May? |
My friend and I need $2,500 plus another thousand by the end of May. We already know the basics such as baby-sit, rake leaves, walk dogs, etc. But do you know any other fast ways?
We ... |
|
 I have a bank account problem....? |
| Halifax have taken £116.82 out of my ISA Savings Account for no reason whatsoever. Im really crap at confronting people face to face or on the telephone. What shall I do?... |
|
 I need to purchase something $100 over my account balance on my debit card. Will my bank allow this? |
| I need to make an important purchase but what I need is a little over a $100 pass my account balance. Will my bank allow this purchase to go through? I Bank At Banco Popular Unfortunately...... |
|
 What do you guys consider "rich"? |
| say a married man with two kids. how much income a year would u call rich?... |
|
 How can a teenager earn about $5000 in 3 months? |
| I'm about 16 and want to get enough money to go on exchange to Japan. My family isn't very rich, so getting money from them is out of the question.... |
|
 Is a life without credit cards the best way to live? |
| My family used to use credit cards a lot, and now we don't, my dad even paid a $500 PS3 with cash, I was like , "What the hell?" Is my dad being smart?... |
|
 Would you spend 10 years in your house for 10 billion dollars? |
You could never leave. And you would live alone.
You could never go to a doctor, or go to a dentist. They could come to you.
No vacations, no outside company except for people to come to ... |
|
 What is a savings bond? And what do I do with it? |
| My daughters grandma gave her a savings bond, my daughter is nine. It looks like a travellers check, but what do I do with it do I cash it? Iam clueless.... |
|
 A friend borrowed money from me for car. I paid the seller by check. Now he refuses to pay back. What do I do? |
| He borrowed money from me to buy a car from a private seller- I paid money to the seller by check. The seller transferred the car's registration and everything to him after getting the check ... |
|
|  |
S R | Should I start a regular saving now or wait until I have finished paying off my debt? |
|
 |
 
Mizzie
 |
Pay your debt first as the money you are saving is a waste if you are incurring interest on your debts! |
|
Steph007ess
 |
save a bit as a cushion in emergency. Then deal with the debt before you start saving regularly. This is because the interest you pay on your debt is more likely quite a lot higher than the interest you will earn on savings. So any savings you have are only actually worth the amount less the interest charged on outstanding debt. |
|
cooldaddyhot
 |
always pay off expensive debt before saving
what is the point of saving £100 which might earn you 3% interest after tax, when you could pay off £100 of debt that is costing you probably 20% interest
with the above example , every £100 saved instead of repaid would costs you £17 per year
£1000 would costs you £170 per year |
|
taketwo
 |
if you can afford then save because you will get some interest back to offset interest on your debt payment. |
|
Tom W
|
Pay off your debt first - most interest rates for debt repayment are much higher than the rate of interest you would earn on savings (about the very lowest rate you can get on an unsecured loan is 6.9% compared with the best savings rate of around 6%).
Credit cards are usually the best paid as soon as possible as these are notorious for having astronomical interest rates often exceeding 10%.
There are one or two exceptions - student loans for example which have an interest rate equal to inflation (on average assume 2 to 3%). You would be crazy to pay off such a cheap loan early as you can make about 3% more than the interest you are being charged.
Don't forget when calculating interest, you will also have to pay VAT on most savings so when a bank advertises a 6% regular saver, after tax the 'real' interest you would see would be nearer 5%.
So, say for example you had a loan of £100 with an interest rate of 6.9% and instead of paying that off over a year, you saved £100 in an account with an interest rate of 6%. You will earn around £5 in interest (after you have taken off some for tax), but you would have accrued an additional £6.90 of debt on your loan - so you are down £1.90 on where you would have been if you'd paid off your debt. |
|
X
|
start now, learn the habit of saving. if you wait until you're debt free, that day may never come |
|
katehughes2706
|
I'd pay as much off your debt as you can. As the interest on what you owe mounts up a lot more quicker than the interest on what you save.
Then when you have payed your debts off you can save even more. |
|
working mom of 3
 |
You can work on both, and you should. That way, if something unexpected were to happen, you would have some savings to fall back on. My husband and I have $25.00 per week automatically deducted and put into our savings account. It isn't much, we don't miss it, and it has accumulated into a nice little nest! Good Luck! |
|
Tuppence
|
I do both. I am trying to pay off my debt but I am also saving a little bit each month to deal with unexpected bills so that I do not go further into debt. It's well worth doing. Just ask yourself "do I have the funds to deal with a large bill eg car problem with out using a credit card or loan?" If the answer is no then you should start putting some money aside every month. Once that money builds up you can then start doing things like using half of it to pay off a chunk of your debt. |
|
gaelgal2005
|
Follow the 80 /10 / 10 formula... save 10% of your income, give 10% away and live off of 80% (this includes your debt payments.)
It works! |
|
break
 |
Always pay off your debt... If you are interested in investing and debt why not have a look at the motley fools.... I have found them to be brilliant, this is what thye say about savings v debt:
A common mistake for well-meaning but misguided savers is to carry debt on the credit card while accumulating savings in the building society. Unless you have a 0% card, these are good intentions, but bad maths: with savings earning, say, 5%, but debts costing 15%, there's a shortfall of 10%. It makes far better sense to use the savings to pay off the debt and start again from scratch with savings that are earning real returns. |
|
Nutty Girl
|
save and pay ,treat saving as another bill and when bills are paid increase the saving amount. |
|
Death By Snoo Snoo
|
It all depends. You need to look into your interest rate and decide whether the current rate of your paying is lower than what you could save at, i.e is there a net positive between the rate of savings and rate of interest. If yes, it is advisable to pay debt and save simultaneously (oppotunity cost). However, you can always pay off your debt quicky and then accumulate. |
|
ash 7
|
assuming your debts consisting of both interest payable and interest free
- pay those which accumulate interest first
- for those non-interest accumulative, break them down in a suitable time frame for payment
save part of your salary for emergencies, no matter how small
when you are debt free, then increase your savings per month. |
|
kaydee
 |
If you can vary your payments on the debt you have, increase them to pay off earlier. If your payments are fixed, save any little bit you can and when your debt is paid, you can also save this element. |
|
Ken
|
You don't say what your debt is or what you are saving for. If you are saving to purchase real estate, the primary consideration in this equation is your debt ratio. You obtain your debt ratio by taking the total monthly payments on your debt and dividing it by your net monthly income. If your debt ratio is too high, you will not qualify for a mortgage and you will have to pay down debt before buying a house anyway. If your debt ratios are in line with your income, then you may want to save the money for a house. Even though you will continue to pay interest on your debt, housing prices are generally rising faster than the interest you would pay. Thus, delaying the purchase of a home will cost you more than paying off your debt because you will ultimately pay more for the house.
If you are simply saving for an emergency, the question is whether you will be disciplined enough to not incur new debt once this debt is paid off. If you struggle to pay off your debt and don't have savings but then incur new debt, you will now have new debt and no savings. Your credit rating will improve and that is a benefit but it will also cause lenders to send you new offers which may tempt you. It is always a good idea to have some money in savings for an emergency.
Finally, you do not say whether you have a retirement fund or other long term investment vehicle. The tax savings from placing your money in a 401(K) or IRA generally offset the interest you are paying on your debt, so you would be better putting your money in a tax deferred account rather than paying off your debt. When you get enough in a 401(K) or IRA you can borrow against that at a lower rate to offset high consumer credit costs if you would like. |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
16 | 38 minutes(s) ago
| | | |
16 | 2 hour(s) ago
| | | |
16 | 4 hour(s) ago
| | | |
15 | 5 hour(s) ago
| | | |
16 | 7 hour(s) ago
| | | |
15 | 11 hour(s) ago
| | | |
13 | 1 day(s) ago
| | | |
15 | 6 day(s) ago
| | | |
16 | 2 week(s) ago
| | | |
16 | 2 month(s) ago
| |
|
Homepage 
Financial
Forum 
Personal Finance 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
