Martin says pay the debts but I need the cash

badshot1uk

Hi All,

I know martin says that if you have any spare cash to pay off those credit cards and loans etc.

I have just received a small amount back from the working tax credits due to me having a duff year last year.

I have a couple of 0% cards and one of around 15%, I also have a loan with has a couple of years left, and I also owe the taxman some money, which I have a monthly payment agreement with them.

The problem is that business isn't good at the moment and I need any extra cash just to live / pay mortgage / bills etc.

As I dont have a regular income, surely this 'dont save pay off mentailty' doesn't work when your self employed?

Any help or advice gladly received.

MrsTinks

But if you need it to live then it's not really spare cash is it?

bathgatebuyer

You still need to live! Spare cash is what's left over once you've paid for essentials. If you need it for essentials, then use it for that. I also always try and keep £100 in an old passbook account for emergencies and also so that I can relax enough that if a bill comes in, I can pay it.

edinburgher

I'm sure that Martin's advice doesn't include paying off debts to the extent of making yourself starve! I often try too hard to save and end up struggling to make ends meet at the end of the month, so a sensible approach to budgeting is advised. There's no point budgeting and saving if essentials are being missed

Jacks_xxx

:hello: Honeybunny, hanging onto it for a couple of weeks or months until you need to spend it doesn't really constitute saving, does it?

And if you need the money when it comes in - however it comes in - it's not "spare" is it?!

Many people have an emergency fund in the bank, but it's not saving cos it's meant to be taken out when needed.

Most self employed people put money aside for tax but again it's not saving cos it's money already spoken for.

Martin just means that it's silly to sit on large sums of savings and maybe even try to add to them when the interest rates on any debts will be taking more from you than your savings can give you.

If you need the money to live then don't even worry about it, we all have to eat and pay the regular bills.

Love Jacks xxx