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Red Alert:High Risk of Shortfall

Maybe a no brainer for people on the forum but I have a question. I received a letter today telling me that my £30,000 endowment is ‘red’ and I will shortfall by £2000 at the end of its term in exactly one year.
Should I use an available £10,000 to pay off a chunk or hang in? Or should I put the money in a fixed bond and use it to pay the shortfall?

Comments

  • Nessa56
    Nessa56 Posts: 946 Forumite
    Part of the Furniture Combo Breaker PPI Party Pooper
    edited 7 September 2009 pm30 2:18PM
    scapegrace wrote: »
    Maybe a no brainer for people on the forum but I have a question. I received a letter today telling me that my £30,000 endowment is ‘red’ and I will shortfall by £2000 at the end of its term in exactly one year.
    Should I use an available £10,000 to pay off a chunk or hang in? Or should I put the money in a fixed bond and use it to pay the shortfall?

    I can't help unfortunately but am bumping this as there are lots of people on here I am sure can help you

    good luck

    v
    x
    SEALED POT CHALLENGE 6 - MEMBER NUMBER 086 Special Star from Sue :staradmin :T:T
  • dunstonh
    dunstonh Posts: 118,615 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Should I use an available £10,000 to pay off a chunk or hang in? Or should I put the money in a fixed bond and use it to pay the shortfall?


    Is the fixed term deposit rate higher than the mortgage rate?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Post some info about the policy

    Provider
    Guaranteed sum assured
    Declared bonuses
    Surrender value
    Monthly premium
    Maturity date
    Maturity forecasts

    Interest rate payable on mortgage
    Trying to keep it simple...;)
This discussion has been closed.
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