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    • Cumbria lass
    • By Cumbria lass 20th Mar 17, 1:28 PM
    • 634Posts
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    Cumbria lass
    Hypothetical Dilemma
    • #1
    • 20th Mar 17, 1:28 PM
    Hypothetical Dilemma 20th Mar 17 at 1:28 PM
    Hello, I have a debt diary but decided to ask this question on this board.

    My employers haven't given its employees a pay rise in 2 years , but this year they feel able to negotiate a 3 yr deal. One of the options is that I will receive £2000 in my salary probably in April.

    Now my dilemma :

    1. Do I save it in my emergency fund.
    2. Do I pay it off my 0% credit card which would clear the smallest one.
    3. Do I split it in 3 into savings , repay some of the debt and the other 3rd treat myself.

    What would the experienced MSE's do ?
    Oct 2017 CC1 £3439CC 2 £927

    Debt Free Nov 2019: earlier if I have my way
Page 1
    • MrsPorridge
    • By MrsPorridge 20th Mar 17, 1:48 PM
    • 1,603 Posts
    • 2,333 Thanks
    MrsPorridge
    • #2
    • 20th Mar 17, 1:48 PM
    • #2
    • 20th Mar 17, 1:48 PM
    If it was me I think I would try and clear one of my debts - the smallest CC as you have mentioned.
    Getting back on Track
    • MrsTinks
    • By MrsTinks 20th Mar 17, 2:03 PM
    • 14,986 Posts
    • 23,009 Thanks
    MrsTinks
    • #3
    • 20th Mar 17, 2:03 PM
    • #3
    • 20th Mar 17, 2:03 PM
    So long as you have room for treats in your current budget then I wouldn't use any of it on that.

    All my debts are 0% at the moment (apart from the car and mortgage) - I'm about to probably get a windfall that will clear all my 0% debts. To me that is so significant that I can't event contemplate NOT doing it... I know they're not costing me any thing and won't until I could pay them off naturally, but the feeling of finally being debt free is something I'm so bloody chuffed about I then plan on sticking a significant amount in savings as I'm used to doing without it already

    However it really is horses for courses here - there is no "every solution fits all" - if you think you're more likely to go off the rails if you don't have a little treat, then have a little, planned, treat
    If you are more likely to spend money in savings then pay it off the cards. If you know you'd only use it in an emergency then stick it in savings until either your 0% comes to an end or an emergency occurs.
    DFW Nerd #025
    • sourcrates
    • By sourcrates 20th Mar 17, 2:07 PM
    • 12,221 Posts
    • 11,664 Thanks
    sourcrates
    • #4
    • 20th Mar 17, 2:07 PM
    • #4
    • 20th Mar 17, 2:07 PM
    I would go with option 3.

    As i`ve known a few "Cumbria lasses" and they dont like to be boring !!!
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
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    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
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    • Helvetica Van Buren
    • By Helvetica Van Buren 20th Mar 17, 2:10 PM
    • 243 Posts
    • 341 Thanks
    Helvetica Van Buren
    • #5
    • 20th Mar 17, 2:10 PM
    • #5
    • 20th Mar 17, 2:10 PM
    Keep it in savings until the first 0% balance ends, then pay that off.
    • Cumbria lass
    • By Cumbria lass 20th Mar 17, 4:39 PM
    • 634 Posts
    • 2,454 Thanks
    Cumbria lass
    • #6
    • 20th Mar 17, 4:39 PM
    • #6
    • 20th Mar 17, 4:39 PM
    Thanks for the replies so far .
    Oct 2017 CC1 £3439CC 2 £927

    Debt Free Nov 2019: earlier if I have my way
    • enthusiasticsaver
    • By enthusiasticsaver 20th Mar 17, 4:40 PM
    • 4,444 Posts
    • 8,269 Thanks
    enthusiasticsaver
    • #7
    • 20th Mar 17, 4:40 PM
    • #7
    • 20th Mar 17, 4:40 PM
    I think most of us would say pay it off the debt. Personally beyond a reasonable emergency fund I see no point in saving until debt is paid off and treats should be budgeted for monthly and bigger treats saved for when the debt is gone.
    Countdown to early retirement on 21.12.17 2 months to go.
    • takman
    • By takman 20th Mar 17, 4:48 PM
    • 2,720 Posts
    • 2,273 Thanks
    takman
    • #8
    • 20th Mar 17, 4:48 PM
    • #8
    • 20th Mar 17, 4:48 PM
    Well if all your debt is at 0% then the money saving thing to do would be to put the £2000 into a high interest current account and only pay the minimum payment on the credit card.


    If the £2000 doesn't cover the debt in full then save atleast an amount each month into a high interest account (current account or regular saver/s) that will total the amount you owe when the 0% period finishes.


    Once it does finish then you don't pay it off you apply for a 0% fee balance transfer card and transfer the balance. You then keep doing this until the debt is paid off by minimum payments or you are unable to get another card and you then pay off the card with the money in your savings.
    • Cumbria lass
    • By Cumbria lass 21st Mar 17, 11:54 AM
    • 634 Posts
    • 2,454 Thanks
    Cumbria lass
    • #9
    • 21st Mar 17, 11:54 AM
    • #9
    • 21st Mar 17, 11:54 AM
    Will be thinking very carefully about the money . I think it will get paid off cc though
    Oct 2017 CC1 £3439CC 2 £927

    Debt Free Nov 2019: earlier if I have my way
    • FatVonD
    • By FatVonD 21st Mar 17, 12:16 PM
    • 4,884 Posts
    • 19,217 Thanks
    FatVonD
    Pay off the credit card then treat yourself for one month with the amount you would be paying to that card then use it afterwards to either save or pay down another quicker.
    Make £10 a day in October £224.01/£310 (September £374.30, August £223.95, July £71.45, June £251.22, May£119.33, April £236.24, March £106.74, Feb £40.99, Jan £98.54)
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