This year, it certainly seems that what an increasing number of people want for Christmas is less debt. Compared to a survey conducted last year, where 18 per cent had used their Christmas bonus to pay off debt, this year 26 per cent of people surveyed who received a bonus intended to use their bonus to reduce the amount they owe.
With the desire to be debt-free high on many people’s Christmas lists, it’s therefore surprising to find that only two per cent of consumers intend to use their bonus to reduce their mortgage, often people’s biggest financial burden, when doing so could save them thousands of pounds.
Simply paying the average annual bonus into a current account mortgage each year could pay off your mortgage more than six years early, saving thousands of pounds in interest in the process, which really would be something worth celebrating.
Debbie Milsom, spokesperson for The One Account, comments: ‘We all yearn to be mortgage-free, but this need not be an impossible dream. Having a current account mortgage, like The One Account, brings together your mortgage, current account, savings, loans and credit cards. Simply put, it means that any money in your current account, be it monthly salary, savings, or indeed your hard-earned bonus, is constantly working to reduce your mortgage but is accessible at all times. You have worked hard for your bonus – so let your bonus work hard for you.’
Milsom continues, ‘Having your current account working for your mortgage provides flexibility and uses your monthly income or extra money to help you reduce the interest paid on your mortgage and in turn reduce the term. The fact that over 80 per cent of The One Account customers are on track to pay off their mortgage earlier clearly demonstrates this.
‘It is the lifestyle benefits of The One Account that really makes it stand out - undoubtedly the most inspiring is the ability to pay off your mortgage early. Shrink your mortgage, not your dreams.’
Got a mortgage and want to be able to make better use of your bonus this year? Have a go on the Mortgage Shrinker at www.oneaccount.com