Immediate / Short Term
- Construct a Will with Legal advice to properly distribute your desires in terms of your estates. If Daisy were to decease Alice wouldn’t inherit her anything as it would go directly to Luke then Roscoe.
- Pay off Daisy’s credit card. Credit cards usually charge interest in the range 19-30% APR for minimum balance payments. This is significantly higher than interest that you can earn on your savings or investments. This will reduce your annual expenditure by around £900 p.a.
- Review your car loan agreement to assess option for early re-payment. You will pay £11,340 (12 months x £189 X 5 years) for your car of purchase value £10,000. This represents 13.4% interest, and higher than you can earn on your savings.
- Mortgage changes
-Reduce annual mortgage payment by reviewing cheaper short term fixed rate
–OR Deviate from current mortgage plan to an Offset mortgage
As you are currently in a sound financial position you could potentially payoff your mortgage prior to 2023 through deviating from your existing mortgage plan to an offset mortgage (Government, 2015).