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which life?

callymac · 2008-02-21 10:06:07

Thanks for all your helpful suggestions so far re our debts. Just to put you in the picture my husband is a fit and semi retired 70 yrs and I am 50yrs and working. We have two teenagers under 18yrs. As far as I can see with the extent of our debts (see previous post!)we have these options: take out a DMP which will last…

Comments

PasturesNew Posts: 70,698 Forumite

23 February 2008 at 6:19PM

I'd go for option 3

If you stick £100k in a high interest earning account, after basic rate tax you'll earn about 4.5%/year.

Assuming that rents rise 3%/year then it would take 11 years for that to dwindle to £0.

What you need to do is bank the £100k and live only from your income. So pretend the £100k isn't there.

House prices are falling. Maybe in 5 years' time you will feel able and ready to buy another house if you want. But maybe you will have decided to spend the £100k on something else.

At some future point you might decide to move to a cheaper area and find that £100k will pretty much buy you a house mortgage free.

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