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subboy2
Posts: 119 Forumite
Hi guys
I have mounting debts of £3002.86 including several pay day loans, 3 rubbish credit cards, 2 catalogues, and a mobile phone contract.
I have a debt management plan via stepchange which I initiated last month on the advise of my bank.
Luckily for me, I have just received a windfall of £3000.
Part of me just thinks I should cancel the dmp now (I'd cancel it either way as I know it's not for people who have the means to pay off their debts straight out), and pay off the debts straight away - however this would obliterate the entire sum, leaving no savings at all and to be honest I've NEVER had this amount of money all at once before (thanks to stupid money decisions from myself - I obviously take full blame for that!).
What should I do?
This probably sounds stupid to all you sensible people but I am hopeless and clueless when it comes to money management. The last thing I want to do is pay everything off then end up back in debt.]
That said, the debt issues have caused me a lot of depression problems over the last few years, to the point where I've become terrified of opening my mail, and lost the will to do/look at a lot of things (yes, I know, I'm making this a pathetic sob story - but I only have myself to blame!) so the thought of removing all these debts is making me feel quite giddy!
If you haven’t already, join the forum to reply!
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I have mounting debts of £3002.86 including several pay day loans, 3 rubbish credit cards, 2 catalogues, and a mobile phone contract.
I have a debt management plan via stepchange which I initiated last month on the advise of my bank.
Luckily for me, I have just received a windfall of £3000.
Part of me just thinks I should cancel the dmp now (I'd cancel it either way as I know it's not for people who have the means to pay off their debts straight out), and pay off the debts straight away - however this would obliterate the entire sum, leaving no savings at all and to be honest I've NEVER had this amount of money all at once before (thanks to stupid money decisions from myself - I obviously take full blame for that!).
What should I do?
This probably sounds stupid to all you sensible people but I am hopeless and clueless when it comes to money management. The last thing I want to do is pay everything off then end up back in debt.]
That said, the debt issues have caused me a lot of depression problems over the last few years, to the point where I've become terrified of opening my mail, and lost the will to do/look at a lot of things (yes, I know, I'm making this a pathetic sob story - but I only have myself to blame!) so the thought of removing all these debts is making me feel quite giddy!
If you haven’t already, join the forum to reply!
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Comments
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Oh Pay Debts Off !! no doubts about it, no more interest to pay, start to improve your credit rating/history.
you have a brand new clean slate!
do a SOA http://www.stoozing.com/calculator/soa.php
put down the amount you would have been paying into the DMP into the box for SAVINGS. wow, you'll feel great.
really happy for you.
oh, important PS. CLOSE CATALOGUES, LOANS AND CREDIT CARDS!!!LIVE SIMPLY * GIVE MORE * EXPECT LESS * BE THANKFUL0 -
Pay it off asap, the interest may not be frozen on any/all of your debts so you'd be better getting rid asap.
Once you've paid it all off you can start saving.
There are a few free online money management courses which are worth considering.
The Great Declutter Challenge - £876
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Pay it off immediately. You've never had this money before, and you don't really have it now.
Look at it this way; if you were debt free, would you take on a £3k loan that you would struggle to service in order to have £3k in the bank?0 -
Thanks guys - much appreciated and respected comments.
To be honest the common sense (small part of me) in me was screaming to pay them off! But my heart was saying Noooooooooo keep the money, you never know when you'll have it again!
I'm going to bite the bullet and pay everything off today - sit down by the phone with my list of creditors and just get rid of it all
Then I'll look into some money management training/courses so I don't end up like this again!0 -
you are going to feel so brilliant by the end of today, go you!
post back when you've done it LIVE SIMPLY * GIVE MORE * EXPECT LESS * BE THANKFUL0 -
I'd also pay them off and once you have then I would set up a new savings bank account and transfer the money you would have paid in to the DMP to that new account for at least 6months, and preferably longer.
That way in future you will have an emergency fund and shouldn't need to use payday loans again and learning to live on a fairly tight budget for 6months will be really useful for your ongoing money management.
Good luckA smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
asparagus1968 wrote: »you are going to feel so brilliant by the end of today, go you!
post back when you've done it
Thank you! I definately will do! 0 -
I agree with the above- pay off your debt and cancel your cards etc so that you can't go crazy or bury your head in the sand again. Set up a savings account and plan out a realistic budget that allows you to save a little each month.
It's all easier said than done - spend a lot of time on here too to educate and change your mindset!0 -
Keep £1,000 savings and use the £2,000 to pay off debts.0
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