Should I pay off my debt today?

[Debtfreein2026]

took out a personal loan in 2022 to be able to buy a new (affordable car) as my car at the time went bust and couldn’t afford to buy outright.

Payments are £158 a month which is doable for me but I just want the burden of being in debt to be taken off me.

current amount remaining on the loan is £2990, I have £3000 currently in savings which can pay this off today however that’s all my savings and I will need to start rebuilding from next month.

should I pay off the loan today or wait another month?

YABU - wait another month
YANBU - pay it off today

Depends if you have any safety net - like do u live alone and sole responsibility for bills or do u share a house and bills .
Can you use a credit card if you have an emergency?

I would pay it off as i hate debt . But that’s just me !

Could you pay half off so that you still have some safety net but will also clear the debt faster?

I’d keep hold of the cash. If nothing has changed and you can afford the repayments I’d just keep going. You might need the cash.

I would pay half off and keep the other half of my savings for in case of emergencies.

What interest rate are you paying on the loan, what interest are you getting on the £3,000? If the loan rate is higher, pay off the loan.

Keep saving. Don't leave yourself with no emergency fund.

What is the APR on your loan? Interest has gone up a good few percent since 2022- I have a loan from then which is only 2.5%, same loan now would be 5/6%

I would build more cash before paying off the loan. If you pay it off now and your boiler dies tomorrow how are you paying for that? If you have a safety net great but it might cost more than the £158 you have available once the loan is paid.

Unless the interest rate on the loan is absolutely extortionate, keep your savings and just offset the interest you get on those against whatever interest you are paying on the loan.

Don't leave yourself with absolutely nothing in savings because if your car or your boiler or something breaks, you will need money for those repairs.