Looking for real help and advice

spr6wo

Hi all,

I have been trying for the last few years to clear my debts and I have now pretty much managed to achieve it.

However I have now been told that I am going to receive a reasonable bonus (no, I don't work for a bank!) but don't know what I should do with it.

Obviously my head says I should use it to pay off the rest of my debts (approx £200), but I would also like to find some way of using it to improve my credit rating, I would also like to use it for something nice as I have had to work hard for this bonus.
I also have a desire to use some of this money to make more so that I can use it to finish decorating the house or buy a newer car.

As you can tell, I have a lot of options, but I don't know what to do, I don't want this money to go the same way as other smaller bonuses and slowly disappear through paying minor bills etc.

Can anyone help me to get my life back on track and create a better future for myself?
Good quality advice will be very much appreciated.

Steve

~Beanie~

Surely clearing your remaining debts WILL improve your credit rating and so should be the way to go?

spr6wo

Thanks, but the debt is only in the region of £200, and my credit rating seems to be so low that I doubt just clearing it will give me any substantial improvement.
My bonus is about £900 (less tax). What would you recommend for the rest?

TurnaroundSue

Hi and welcome to the boards. I would definitely pay off your remaining debt. Even though it is only £200 this will give you a great psycological boost knowing that you are debt free? With the remainder, I would give myself a little treat and then put it aside until you have decided what you really want to do with it.

Do you have any savings at all? I like to know that I have something in the bank for an emergency, so maybe just saving it could be an option. I know the rates aren't very good at the moment, but at least it will give you that cushion should you need it.

Good luck and let us know what you decide to do.

Fire_Fox

Decorating the house the MSE way could increase it's value (or at least help maintain it), which will improve your credit worthiness and wealth longer term. Thus later on you may be in a better position to purchase a newer car!

Only buy a newer car if you can make it work for you financially, e.g. it will be hugely cheaper to run (more efficient, lower insurance/ tax). Cars depreciate in value AND they cost you a fortune to run. :mad:

Consider too whether you are letting your heart rule your head or vice versa with this money, what kind of thinking got you into debt in the first place, and what kind of thinking got you out?

spr6wo

Thanks all, It really seems to be something of a minefield!
I will pay off the debts first, then probably buy myself a little something (like a new MP3 player (below £100)). I don't have any savings at all, so then it will go into a bank account until I can decide how to make it grow.