Small windfall - not sure what to do with it!

leo2moss

I've had a nice windfall - £300. The last windfall I went went on a holiday (a wonderful one and I don't regret spending a penny of it) but this time I want to do the sensible thing. I realise it's better to clear debt before saving but - do I use it to pay off the balance of my credit card or do I put it towards my mortgage (which is a 50/50 split endowment/capital and interest running for another 18 years)

Sorry if this doesn't make sense - I'm dyscalculic and working out interest rates, APR, etc drives me to distraction, so I'm just looking for a general idea of which is going to be best.

Thanks

olias

It aint going to make a dint in your mortgage!

If it's enough to clear your credit card debt then I would go down that route (and then cut up the card! - or at least put it away for emergencies only.

Olias

PinkGrapefruit_2

How about a compromise by paying half towards your CC and the other half have night/weekend away?

leo2moss

olias wrote: »

It aint going to make a dint in your mortgage!

If it's enough to clear your credit card debt then I would go down that route (and then cut up the card! - or at least put it away for emergencies only.

Olias

I'm sure it won't - even though it's not a big mortgage. That said, I don't have a huge balance on the credit card and will be able to pay it off over the next two or three months from my salary (My only major debts are the mortgage and car loan.) I just wondered if it would be an idea to put this (and any other windfalls/savings) towards reducing the mortgage rather than the credit card, as the interest on that must surely be much more over an 18 year period? Hope this makes sense!

leo2moss

PinkGrapefruit wrote: »

How about a compromise by paying half towards your CC and the other half have night/weekend away?

Ooh - you're putting temptation my way and I was really intending to be good ... ...

McKneff

Give over with the sensible, get your self away for a holiday and spend it on yourself. Make some memories and have a good time. Its money you wouldnt have had so just get it spent.

PinkGrapefruit_2

leo2moss wrote: »

Ooh - you're putting temptation my way and I was really intending to be good ... ...

Aha well this way you can still be half good :beer:

McKneff

PinkGrapefruit wrote: »

Aha well this way you can still be half good :beer:

and half bad;)

leo2moss

I feel like I'm in one of those cartoons where there's a little angel sitting on one shoulder and a little devil sitting on the other!!

Trouble is that last year I had a windfall that was a good bit bigger and I blew it on a New Year's trip to Tunisia - spent more on a week's holiday (to a fantastic 4* hotel, All Inclusive, etc, etc) than I normally would for my fortnight in the summer. So I'm working on the assumption that I really should be good this time. Aaaaaargh!!

ohmsoft

OK providing you don't decide to spend it on a holiday - which I'm sure would be well deserved if you do so (so don't feel bad if you do).

You can mess about with dates and terms of loans along with snowballing calulations and so forth - but, the simplest stratagey is to consider the debt with the highest interest rate - assuming your not bouncing your credit card around the 0% deals at the moment (and even if you do, that's likely to end at some point) I'd pay the money to the credit card - which would almost certinally have the higher rate.

The above said, another idea is to save it in an emergency fund (if you don't already have one) that could be invaluble if worst came to worst to help you make a mortgage payment in the future - You won't get a better rate than your loans though and I would use your Cash ISA allowance if avaiable for it.

leo2moss

Thanks to everyone for the advice. I really do struggle with the maths of this (something like dyslexia but for numbers - ie, I get the theory but the calculations let me down) so I want to do the simplest thing that'll have the biggest effect. I'

ve checked calculations and I'm due my mileage on my next pay which would give me £120+ to put to the c.c. So here's my plan - fingers crossed it's a good one - I'm going to put that to the c.c., along with £100 of the windfall. £100 into my emergency fund (which always needs a bit of a boost) and £100 towards a nice weekend away (now to check out Travelodge!)
Best of all worlds really :j