Debt I understand, inflation I don't....
in Mortgage-free wannabe
2 replies 556 views
I have around £3.500 left to pay off my mortgage. I have the money in an ISA and could pay it off tomorrow but as I'm only paying .69 per cent on my mortgage interest and earning 3 per cent in the ISA there is no point. This much I understand however inflation is currently running at 4.5 per cent so where does that leave me? Inflation has a negative effect on savings so although I might be earning more on my savings than paying on my debt does inflation negate this effect?
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