What to do with 10k in a savings account

[Choc36]

Looking for some advice on what to do with 10k in a savings account. 1- I could put it in the offset account. 2- I could add to it for a bit more of a deposit on next I/P property. 3- I could pay out a car loan and add the amount of that loan to the other loan to get rid of bad debt faster. What are your thought?

 

[Jamie M]

Hiya

It's a bit difficult to answer without more information.

Personally - if you can get rid of the car debt but still retain some sort of cash buffer then I'd consider doing that.

Cheers

Jamie

 

[Choc36]

I was leaning towards paying the car out to, can give me an example of what other information you need Jamie.

 

[danwatto]

How expensive is your car that you needed a loan? If it's alot and it still has resale value, you could downsize to one that's affordable, clear the loan, and put any leftover money towards your savings towards an IP.

A bit more radical than your question, but will get you further ahead..

 

[albanga]

Well to begin with whilst you think it should be in the offset account if it's for your PPOR. Any reason it's not already?

I agree with Jamie on the limited informstion but would be leaning towards paying off the car loan which I am guessing is around 7-8%?

 

[Redom]

I was leaning towards paying the car out to, can give me an example of what other information you need Jamie.

How much debt do you currently have?

Its pretty important from a risk management perspective to have liquid funds available to cover 'unexpected' circumstances. Lots say 'at least 3 months mortgage cover' (assuming vacancy for your all IPs).

So if you have multiple IP's, it may be best keeping it in the offset where its liquid. If you don't have much debt, then perhaps the car loan is a good place to put it in.

Cheers,
Redom

 

[yee3890]

1) Always paying off off non tax deductible debt first--Car Loan