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Using Savings to Pay off Debts

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Comments

  • Throwaway1
    Throwaway1 Posts: 528 Forumite
    Eighth Anniversary 500 Posts Combo Breaker
    Get it paid off!



    Not that I am advocating this, but let's say you paid it off and my some terrible coincidence something happened that meant you had to use your £2.5k of savings and still needed more, then you could borrow that amount again, probably on much better rates, which would only put you back where you are now and has a very, very slim chance of happening. If you keep the debt then you've made that chance a certainty. You're throwing money away every week that you could be putting in your savings.
    MFW - OP 10% each year to clear mortgage in 10 years!
    2019: £16,125/£16,125
    2020: £14,172.64/£14,172.64
    2021: £12,333.62/£12,333.62
    2022: £10,626.55/£10,626.55
    2023: switched tactics to saving in a higher interest rate account than mortgage interest rate
    2024: mortgage neutral!
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