Personal smile

Published on March 4th, 2013 | by Pete

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A strange reason to smile

I am in debt, as you have hopefully gather by now, if you have read any of my previous posts. I expect a number of you dear readers are also in debt, and that this might be part of the reason you visit this site. It can be quite depressing being in debt, something I’m sure you don’t need me to tell you. However, something quite odd did dawn on me recently. This is probably as good a time as ever to be in debt.

I apologise to anyone who has savings at the moment, but this is not really your time. Interest rates are so low, that people are getting very little return on all of their hard work saving money. I am massively in debt, but because of the incredibly low interest rate, my mortgage is only £211 a month. That seems insane when some people are paying £500+ a month to rent. What this means is that when we finish repaying my father back the money he lent us for the deposit on our home, we can sue that extra money to make overpayments on our mortgage, meaning that anything beyond the £211 comes straight off the capital we owe on the mortgage.

This really is a good time to be in debt, providing you have a mortgage that is attached to the bank of England base rate. So, if this includes you, as it does me, make hay while the sun shines. Use extra cash not required for your basic mortgage payments to get rid of debts, or overpay on that mortgage, so that when the economy recovers (which I’m sure it will at some point – it has to doesn’t it?) then you will be in a stronger position then you were pre quadruple dip recession, or whatever number dip we are on now!

There are not many opportunities to smile when thinking about your debt, so if you can, afford yourself a hacking great big grin now. If in Starbucks, go for a small reserved one instead, otherwise people will probably start thinking there is a problem, and reach for their panic alarms…

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