Economy & Finances
Quit cigarettes, live longer and debt free
National No Smoking Day was on Wednesday 12th March this year, but if you missed it there's still good reason to quit.
 |
Research from the mortgage broker Charcol, shows that people who give up smoking could use the money to pay their mortgage off years early and retire, with money to spend.
Homeowners with a 25 year repayment mortgage could save over £30,000 in interest and shave over 9 years from the term of their loan if they used the money to overpay on their mortgage.
If you gave up this time last year, you can pat yourself on the back. You will have saved yourself over £2,000. An ongoing mortgage debt is typically what stops people from retiring.
When you think that a quitter with a mortgage of £100,000 who overpays their 20-a-day fund into their mortgage will pay it off an amazing nine years earlier, and save a whopping £31,756 in interest over the term, it may provide that added incentive to finally stub out the habit.
There is clearly a lot to be saved if new non-smokers take this approach.
Mortgages Guides and Tools
Coupled with potential savings on life assurance premiums and even some home contents insurance policies, there really is a great financial argument for not lighting-up, as well as the obvious benefit to your health.
Life cover of £100,000 for a twenty five year term would cost a 35 year old male smoker £17 a month, whereas for a non-smoker it would be around £10.
Almost all lenders offer the facility to overpay. For the money that you now won't be sending up in smoke, the market leading two year fixed rate from First Direct at 4.75% (cost for comparison 6.25% APR) has an offset account and an overpayment option
Charcol’s exclusive five year tracker from Darlington Building Society at 0.39 over Bank rate (cost for comparison 6.1% APR) has unlimited overpayment facility and interest is calculated daily so the interest is recalculated immediately you reduce your capital by any amount.
Homeowners with a 25 year repayment mortgage could save over £30,000 in interest and shave over 9 years from the term of their loan if they used the money to overpay on their mortgage.
If you gave up this time last year, you can pat yourself on the back. You will have saved yourself over £2,000. An ongoing mortgage debt is typically what stops people from retiring.
When you think that a quitter with a mortgage of £100,000 who overpays their 20-a-day fund into their mortgage will pay it off an amazing nine years earlier, and save a whopping £31,756 in interest over the term, it may provide that added incentive to finally stub out the habit.
There is clearly a lot to be saved if new non-smokers take this approach.
Mortgages Guides and Tools
Coupled with potential savings on life assurance premiums and even some home contents insurance policies, there really is a great financial argument for not lighting-up, as well as the obvious benefit to your health.
Life cover of £100,000 for a twenty five year term would cost a 35 year old male smoker £17 a month, whereas for a non-smoker it would be around £10.
Almost all lenders offer the facility to overpay. For the money that you now won't be sending up in smoke, the market leading two year fixed rate from First Direct at 4.75% (cost for comparison 6.25% APR) has an offset account and an overpayment option
Charcol’s exclusive five year tracker from Darlington Building Society at 0.39 over Bank rate (cost for comparison 6.1% APR) has unlimited overpayment facility and interest is calculated daily so the interest is recalculated immediately you reduce your capital by any amount.
Source: AOL Money
