Sister's Finances

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  • atush
    atush Posts: 18,726 Forumite
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    Decent position.

    I'd pay off the loan, and start a S&S isa.
  • Cotta
    Cotta Posts: 3,667 Forumite
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    atush wrote: »
    Decent position.

    I'd pay off the loan, and start a S&S isa.

    I'm not knocking what you have said but what is the point of paying off the student loan early?


    Also how will the op benefit from a S&S ISA as rates are so low?
  • ivormonee
    ivormonee Posts: 395 Forumite
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    Cotta wrote: »

    Also how will the op benefit from a S&S ISA as rates are so low?

    An S&S ISA relates to stocks and shares whereas when you mention rates I assume you are referring to cash ISAs.
  • pjcox2005
    pjcox2005 Posts: 1,015 Forumite
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    Worth noting that whilst mortgage renewal in Feb 19 many will let you re-mortgage early, so I'd be asking the question when she has 6 months to go on it.
  • Cotta
    Cotta Posts: 3,667 Forumite
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    pjcox2005 wrote: »
    Worth noting that whilst mortgage renewal in Feb 19 many will let you re-mortgage early, so I'd be asking the question when she has 6 months to go on it.

    You really think any bank that has their client locked into such a high rate will discuss this in July?
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    I recommend against extra pension saving unless (i) she could get an even bigger employer contribution, or (ii) she can do it by Salary Sacrifice (often called a "Smart" pension).

    Like several others I think she's doing pretty well save for the high mortgage interest rate.

    As IanSt said, maybe she'd be wise to look at insurance. I'll see if I can find a useful link to post later.
    Free the dunston one next time too.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    kidmugsy wrote: »
    As IanSt said, maybe she'd be wise to look at insurance. I'll see if I can find a useful link to post later.

    Herewith
    http://monevator.com/do-you-need-income-protection-insurance/

    Sorry for the delay: an urgent football match intruded.
    Free the dunston one next time too.
  • eskbanker
    eskbanker Posts: 31,034 Forumite
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    kidmugsy wrote: »
    Sorry for the delay: an urgent football match intruded.
    ....involving a team that a more famous IanSt used to play for? ;)
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    eskbanker wrote: »
    ....involving a team that a more famous IanSt used to play for? ;)

    The very same. He was good, wasn't he? Was he what's now called a "false nine"? But I digress.
    Free the dunston one next time too.
  • aliby21
    aliby21 Posts: 321 Forumite
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    I can't make your figures add up. I get your sister's monthly outgoings to be £1415pm, on a salary of £1800 that doesn't leave enough for her to also be saving £800pm
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