Hi everyone,
I'm not actually a mum but just wanted some advice on this and thought this would be a good place to ask.
So I really am not sure what to do with this money that was left to me by a great uncle. I wasn't going to include figures but I think it will make everything clearer.
Basically I have just finished my 4 year degree, and have a student loan repayment of £27,100. My great uncle left me with £20,000 when I was 15. My parents' plan was always for me to use this toward my uni fees.
So my plan was to take out about £2,000 to travel, then use the rest (£18,000) of the £27,000 to pay off in a lump sum, leaving me with £9,000 to pay back once I start earning £21k+.
I had always sort of just accepted that this is how I'd use the money and never thought much of it but having spoken to a few friends (and some of their parents) they seem to agree that paying a big amount in a lump sum is in a way a waste of money, and I may as well keep this £20k (or at least most of it) as I pretty much have the rest of my life to pay my loan back.
Part of me wants to be 'sensible' and thinks that paying off the £18,000 would be like a big weight off of my shoulders, knowing I have just £9,000 to pay off after. But should I just keep this £20,000 and pay off my loans across my lifetime? Can I get some general opinions on what you would do in this situation or advice your children to do?
Thanks in advance