What to do?

Age: 30
Spouse’s/Partner's age: 35

Annual gross income from employment or profession: 30000
Annual gross income of spouse: 28000

Type of employment: Employed

In general are you:
Saving about 600 p/m

Rough estimate of value of home : 210000
Amount outstanding on your mortgage: 171,000 - 17 years left
What interest rate are you paying?3.25 AIB variable rate

Other borrowings – car loan 220 p/m ends Dec 2011

Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card?

Savings and investments: €20,000 in AIB deposit account

Do you have a pension scheme? No

Do you own any investment or other property? No

Ages of children: 0

Life insurance: Yes

What specific question do you have or what issues are of concern to you?

We've been saving slowing for years without any real target or idea of what to do with it.

Not sure what to do with €20,000 savings and regular monthly savings of €600. Want to either put in deposit at a decent return or maybe pay it off the mortage. Should we start pensions or try to overpay mortgage every month?

Thanks in advance.

Dopey

Thanks for your reply. It's helping me to think about this in a different way.

I'll do some maths and post again later / tomorrow.

Hi dave,

Is it possible to clear the car loan without incurring any penalty ? If so, I would assume it is incurring a higher interest rate than your mortgage. I would look at clearing this loan and putting the €220 p/m against either the mortgage / pension as suggested