Best use for unexpected tax rebate

trailingspouse

Thanks all - yes, to be fair we're sitting pretty as regards emergency fund etc.

OH and I have just had chance to discuss, and now I understand why reducing the term is the best way forward (granted we can afford the monthly payments). I suggested my idea of reducing the monthly payments then using the reduction to overpay my car, and he said that, granted his loan is the higher interest rate we should use the reduction to overpay his loan - which of course is the same as reducing the term. I get it now!!
So, that's what we'll do - and when his term finishes we'll throw money at my loan. And when that's paid off we'll probably be thinking about buying cars again...

AnotherJoe

Are you high rate taxpayers?

If so you are looking at a 40% uplift if you put that in a pension and 15% tax on the way out, so thats another avenue to explore.

trailingspouse

Yes, all sorted on that front AnotherJoe - but thanks for thinking outside the box for us!!