Pay or save?

Story link: Pay or save?

I think a lot of people get lost in the complexity of all the different savings and mortgages out there and how it isn’t a simple swap money wise, as mortgaged money is leveraged.
The best thing to do is to make the most of your extra cash and at least make sure you do one of the two options stated, rather than blow the extra cash, although if you don’t blow the cash the economy will continue to burn, another circle of life!

Pay or save?

The idea is simple: when mortgage interest rates fall, you benefit from lower monthly repayments. So, why not put this extra cash to work by overpaying your mortgage and accelerating its demise? By shortening the life of your loan, you could save yourself a small fortune in interest.
While overpaying your mortgage is a great idea, you may be able to make your money work even harder. Rather than lowering your mortgage and the amount of interest charged, it may be possible to earn better returns by sticking your spare cash in a savings account.