Emergency Fund or Payoff Credit Cards

ethranes · 13 December 2017 at 2:46PM

Keep £1000 for emergencies, use the rest to clear debt.

Sarastro · 15 December 2017 at 8:04PM

I'd pay off the personal loans that are attracting interest. If you are repaying enough to clear the CC debt before the interest free period runs out, then there's no real benefit to paying them more quickly - you might as well keep that for emergency fund. You should also look to maximise your return from savings.

TheLearner2008 · 16 December 2017 at 9:02AM

Sarastro wrote: »

I'd pay off the personal loans that are attracting interest. If you are repaying enough to clear the CC debt before the interest free period runs out, then there's no real benefit to paying them more quickly - you might as well keep that for emergency fund. You should also look to maximise your return from savings.

Thanks for this. I have look at various savings accounts and its pitiful. It seems always pointless to even bother putting money into a savings account.

Fireflyaway · 16 December 2017 at 9:59AM

I'd get together a little emergency fund just in case you don't find work right away or something unexpected happens like an accident / illness. After that start paying off the debt fast as you can. I would close off the credit cards so you are not tempted to use them again. You seem to have a good income so save as much as you can after the debts gone so you don't have to use credit again.

Bublin1 · 18 December 2017 at 4:54PM

Have you thought about the Dave Ramsey Baby Steps Method.

1 - Save up only £1000 for Emergencies
2 - Debt Snow ball
3 - build up Emergency Fund to 3-6 months worth of wages

There are further steps but these are the most important for now.

Emergency Fund or Payoff Credit Cards

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