Would you snowball?

Moneyx3 · 6 December 2017 at 1:30PM

Hi
I would be very interested to hear what others would do in this position - hearts and heads are in disagreement. We have been working on getting debts down as fast as possible but oh now in poor health and I would like to have some fun and travel adventures while we can. Would you keep on paying extra to be debt free in 2 years' time or just pay minimum payments and be in debt for longer. We get private pensions (over 60 but not old enough for state pensions yet) - no mortgage but no insurance either. Total debt 33k.
Thank you.

[Deleted User] · 6 December 2017 at 1:47PM

I'd pay down the debts.

Life is a lot more fun when you're debt free.

PeacefulWaters · 6 December 2017 at 2:05PM

Is the OH terminal?

Does he have assets?

If not, then spend away on credit facilities in the sole name of your OH and pay down debt in your name only.

Moneyx3 · 6 December 2017 at 2:21PM

Thankfully prognosis not yet terminal. Only asset is our shared house. I worry that if left alone I would not be able to manage payments and would be forced to sell house. Would I not still be liable for oh debt after death? We made enquiries and it is too late to get affordable life cover.

System · 6 December 2017 at 2:40PM

The Estate of the deceased would be liable. If there are no monies or assets to cover the debts they go unpaid and die with the debtor.

Moneyx3 · 6 December 2017 at 2:49PM

Thank you. This is what my head is saying.

Moneyx3 · 6 December 2017 at 2:52PM

Thank you for the info, I will look into that.

Shakin_Steve · 6 December 2017 at 3:58PM

If you own your own home, then both of you have assets that include half of a mortgage free house. Debtors may, at least, put a charge on the property.

Moneyx3 · 6 December 2017 at 4:14PM

Thank you for that information - it's an important point to take into consideration.

enthusiasticsaver · 6 December 2017 at 4:39PM

Both my heart and head would be saying get rid of the debt. I could not bear the worry of coping with debt and my OH in poor health too. No holiday could compare with the peace of mind of being debt free. How did the debt arise in the first place and whose name is it in?

Moneyx3 · 6 December 2017 at 6:24PM

Thank you. The debt arose as a result of taking out 2 equal personal loans in order to get rid of the remainder of high cost mortgage. Early retirement lump sum used to pay off the bulk after illness diagnosed. In hindsight not the right move maybe but trying to do the right thing now. Moving house at the wrong time (2007) didn't help.