Global Financial Crisis

[Philx]

I’ve been off work for a year. Thankfully I have an all encompassing interest in the news particularly in the possibility of a recession. It’s been bubbling in the background . The last couple of weeks I have had word from a couple of friends in two of the biggest banks that we are very close to a huge meltdown. Many suggesting Trumps dispute with Deutsche Bank could be the tipping point.

Has anyone heard similar ? If there is a problem what would an average investor do ? Some have suggested buying into Gold but I don’t want to be lumped in with the tinfoil hat brigade.

i would consider this a serious question. I predicted Trumps win, the Brexit result etc. I am concerned.

Any feedback whatsoever would be appreciated. 

[unclebulgaria67]

Spread your savings, just in case any bank is affected, causing delays in accessing cash.  Think about cashing in shares, if you are worried about stock market crash. I am sure there is information online about, how to protect yourself if there is another financial crash.

 

i am sure that I heard similar a few weeks ago.   

 

[Philx]

I’ve been in hospital for a while and have sorted my finances a couple of months ago. I still have a floating £10k which would pretty much pay the mortgage off.Would that be an advantage  I’m guessing not but what do you suggest ?

I never been a major contributor to this site but when I joined I was close to bankruptcy. You helped me claim back a fortune on PPI before most people understood what it meant.

a good time to say thanks.

[honeybee13]

Hi Phil.

 

I don't think we're qualified to advise you on what to do with your lump sum, unfortunately. You need to speak to someone who can take the whole of your financial position into account.

 

It's good to hear that we helped you.

 

HB

[Philx]

You certainly did. I know your not financial advisors . May I put the question another way ? Is investing in a house still worthwhile at this time ?

[Ethel Street]

I'm not qualified to advise you on what to do with your £10k, but I will say that most advice sites that I've seen recommend that if you have a lump sum available it is in most cases better to use it to pay off your debts than to put it into a savings account simply because most people are paying much higher interest rates on their borrowings than they could get with their savings. And prioritise the debts to pay off so that you pay those with the highest interest rate first (which probably isn't your mortgage).  That said, when I was made redundant and able to pay off my mortgage I jumped at it just know that my house was, at last, all mine and if mortgage rates went up it no longer mattered to me!

 

MoneySavingExpert for example:

 

https://www.moneysavingexpert.com/savings/pay-off-debts/

Edited April 30, 2019 by Ethel Street