Cash options.

Options
PolaBear
PolaBear Posts: 53 Forumite
in Debt-free wannabe
Hey people.

Have taken voluntary redundancy from my job and am currently working notice that will end in February. As well as wanting a change, and the company not doing good, the money I receive (2000) can be used to pay off/down some of what I have.

Credit card 1- 2000
Credit Card 2- 3000
Loan- 750
Bank overdraft- 400

As I am working off the notice and so still getting paid, and that is also going towards these, and am also obviously looking to get work afterwards, what in you guys opinion will be the best to use the 2000 payment on? Or should it be held and used to make normal payments? Am thinking the first credit card would make sense as then one has gone. The bank overdraft I am planning to have in credit by February anyway (hopefully).

Comments

  • theoretica
    theoretica Posts: 12,324 Forumite
    First Post Name Dropper Photogenic First Anniversary
    Options
    I would suggest you hold it until you have found another job and then reassess how much you have left and your new wage.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • poppasmurf_bewdley
    poppasmurf_bewdley Posts: 5,910 Forumite
    Name Dropper First Post First Anniversary
    Options
    theoretica wrote: »
    I would suggest you hold it until you have found another job and then reassess how much you have left and your new wage.

    Have to agree 100% with this.

    All you have are unsecured debts and you can make minimum payments on them until you find another job.

    If you have a lump sum available when you are working again, then pay off some of the credit card debt. But I would look to keeping £1000 back in any case to use as a cushion for the future. There's nothing like knowing you have a buffer for an emergency.
    "There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock
  • PolaBear
    PolaBear Posts: 53 Forumite
    Options
    Will be holding it until then. Wasn't too clear, half of my redundancy I am working off in notice, the other half (2000) I will be receiving when I finish).
  • FireWyrm
    FireWyrm Posts: 6,557 Forumite
    First Anniversary Combo Breaker Debt-free and Proud!
    Options
    Then keep the money aside until the day after your first new paypacket. Then pay off the highest interest rate debt first, in this case, probably the overdraft and the loan. Open a new bank account without an overdraft and have your new wages paid in there. Budget from that day forward using something like YNAB and never look back. Treat existing debts as old and repay over time, and ensure you do not incurre any more. As soon as you are running straight again, pay one month's excess money into a savings account and leave it there. Label it 'emergency fund' and dont touch it. Rinse and repeat at regular intervals and when you have some spare money.
    Debt Free! Long road, but we did it
    Meet my best friend : YNAB (you need a budget)
    My other best friend is a filofax.
    Do or do not, there is no try....Yoda.

    [/COLOR]
  • PolaBear
    PolaBear Posts: 53 Forumite
    Options
    Thanks, the new bank account idea iv already considered once this one is straight. As for the interest, the first credit card comes in at about 45 per month, the second a bit higher. The loan is 79 a month finishing in November next year. Interest for that is added in January and July.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.4K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.8K Spending & Discounts
  • 235.5K Work, Benefits & Business
  • 608.4K Mortgages, Homes & Bills
  • 173.2K Life & Family
  • 248.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards