I'm new and need some advice!

silly_mcbilly

Hey guys!

I'm new to this board and would really like some advice. Been looking around for a few days but couldn't really find any answers to my q's so would really appreciate some advice!

Ok here goes...

I'm about to come into some inheritence. 10k to be precise, my long term plan is to put this money into a deposit for a house.

However I have a bit of debt on credit cards :rolleyes: (£5100ish).

I am very torn as to what to do with this money. I'm not actually planning on buyin property for about 2 years, so I won't really need the 10k until then.

My question is.... do you think I'd be better using the money to pay off my credit card debt, or shall I put it into savings and let it grow for the next 2 years and pay off my cards the old fashioned way?

I'm torn and have absolutly no idea what I should do. I'm also concerned that I'll use the money to pay off my debt and then not save the money myself for the house. The money is coming from a much loved relative and I know that it would be his wish for the money to go towards a house in the long run.

I really don't know what to do, the emotional aspect of this money is probably holding me back from doing the sensible thing. What would you do?

Thanks in advance for the advice!

~Ruthie

Merlinexcalibur

Hi. Lots of newbies joining.

RAS

Hi

Can we see and SOA http://www.makesenseofcards.com/soacalc.html

And can you put your debts into the snowball on https://www.whatsthecost.com and work out how much they will cost to pay off at your current rate?

Merlinexcalibur

Yes, let's take a look shall we 'Ruthie'. Then we can help.

LilacPixie

bare in mind interest rates are actually thru the floor at the moment so the money won't 'grow' alot.

fairydiamond

I would pay off ALL your debt, and save the rest and stay out of debt. Best get rid of your debt now:beer:

Merlinexcalibur

Yes, absolutely. Your obligations are to your debt. Pay your dues.

redpete

silly_mcbilly wrote: »

My question is.... do you think I'd be better using the money to pay off my credit card debt, or shall I put it into savings and let it grow for the next 2 years and pay off my cards the old fashioned way?

At the moment that debt is almost certainly costing you quite a lot in interest payments, almost certainly less than you would earn if you saved that amount.

If you don't pay it off the debt will keep growing, so when you come to want to buy a house you won't really have £10000, you'll have £10000 and £5000+ debt.

I'm not sure what you mean by paying the cards off the old fashioned way? Slowly, by paying lots of interest, trying to avoid the issue?

If I was in your situation I would definitely pay off the debts, put the remainder in a one or two year savings account and forget about it. In the meantime you'll have extra money that you are not paying in interest and can add to your savings. It might take a bit longer to get together a deposit for a home but you will be able to consider it all yours without a millstone round your neck.

Merlinexcalibur

Anyway, let's see your SOA. Then everyone here can see what your problem is. And give advice.

silly_mcbilly

That SOA thing doesn't seem to want to let me copy????


Merlinexcalibur my name is Ruth, my friends call me Ruthie, I always end things Ruthie. It's taken me so long to reply because my laptop crashed and then The SOA thing wouldn't work, I'm still trying, bare with me

Merlinexcalibur

I think the general idea here, though, is to fill it in. Nice to know you were still around, though. And obviously watching for replies.

So, why not fill it in and then people can help you. I was going to bump this up for you, so you didn't forget or then it would vanish onto the next page. But then you replied so didn't need to anyway.