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Pay off mortgage + student loan or invest/save?
Manesova83
Posts: 44 Forumite
Afternoon all,
As the title suggest, I'm torn between two options: paying off my debt, or using that money to save/invest for the future.
A bit of background. I have enough cash in a savings account (1.4%) to pay off my mortgage in 5 years' time (can't pay it off in full before the fixed term expires) and to pay off my student loan (currently £13k) in its entirety. But this money represents about 3/4s of my net worth. The other quarter is mostly invested in ETFs, with a bit in crypto as well. I'm in my mid 30s, self-employed, living abroad (in the EU), and have a family to support.
Do you think it's best to strive to be debt free as soon as possible? Or would that money be better used in long-term investments?
Oh and both the mortgage and student loan have a marginally higher interest rate than my savings account, but only by 0.2%
Thanks in advance for your wisdom!
As the title suggest, I'm torn between two options: paying off my debt, or using that money to save/invest for the future.
A bit of background. I have enough cash in a savings account (1.4%) to pay off my mortgage in 5 years' time (can't pay it off in full before the fixed term expires) and to pay off my student loan (currently £13k) in its entirety. But this money represents about 3/4s of my net worth. The other quarter is mostly invested in ETFs, with a bit in crypto as well. I'm in my mid 30s, self-employed, living abroad (in the EU), and have a family to support.
Do you think it's best to strive to be debt free as soon as possible? Or would that money be better used in long-term investments?
Oh and both the mortgage and student loan have a marginally higher interest rate than my savings account, but only by 0.2%
Thanks in advance for your wisdom!
0
Comments
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You might want to read this about Student Loans before you pay anything (depending on your plan):
https://www.moneysavingexpert.com/students/student-loans-repay/0
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