Clear your debts before you save or invest

There are many ways of saving your money. You might not think that paying extra off your loans or credit cards will save you money. But this will often give you a better return than other forms of savings because paying off extra on your loan means you get charged less interest and helps you to clear your debts faster.

Use our loan calculator to see how much you could save if you reduce the amount you borrow. Then compare it to how much you would earn if you saved your money instead.

For example, if you have a €10,000 loan over four years, at an interest rate of 10.1% and pay an extra €100 a month from the start of the sixth month, you would save €583 in interest payments and pay off your loan 13 months early. Putting the same amount of money into a deposit account could give you a much lower return, so if you have loans, think about whether you should pay them off first before you start saving.

Back to top