I'm new and need some advice!

RAS

Well done anyway.

Wow to you clothing and holiday budgets.

Do you spend that much or is it a typo?

And I would definitely pay off the egg card with your inheritance.

Logially, yu should pay off your other card, but if you do not, you can clear that very quickly if you put that £500 towards it.

LilacPixie

Well done Ruth.

Can I ask where your contents insurance is or yout car insurance plus maintanence costs??

Personally I would clear both cars and set up a standing order payment to leave your bank on payday for £130 to your savings account, ideally a 60 day notice account if possible.

redpete

If you're serious about saving for a house deposit you could cut down the clothing spending to help.

And I'd still say pay off the credit cards.

silly_mcbilly

Thanks guys!

I'm fully aware of the fact that I spend WAY too much money on clothes, its ridiculous, I'm trying to get a grip on it, it's part of the reason I'm in this mess in the first place.

My contents insurence is paid for by my landlord (part of my rent) and my car insurance has been paid for the year.

The holiday budget is because I'm goin on a group holiday in August, I've only got 2 more months to pay that off though, (spending money as well).

My head knows that the money should really go to paying off the debts and then save up the money for the house myself. Each month putting as much as I can into my savings to make it back up to the 10k. It's just emotionally, I feel guilty, that the money that was left for me specifically for a house is being used to clear up my mess.

I think I'm gonna take your advice, pay off the debts and then save as much as poss to get the 10k back. Like I said I'm not planning on buying property for 2 years or so anyway, aghh I just feel bad for getting into this mess!

Thanks for all your replies, it's just nice to be able to talk to someone about this!

Ruthie xx

LilacPixie

Here is another way to think about it. if you make your £130 a month payments to your cards it will take you 64 months to pay them both off presuming you do not spend another penny on them.

If you put 64 payments of £130 into a sayings account after paying the card off with yout inheritance you will have £8320 in addition to the 5k left

RAS

Which really does show why it is better to pay off the debt.

If you set up a standing order to your savings account for the £130 per month, you will not miss it and your savings will increase.

And while you are about it, can you sell some of those clothes on e-bay or at a car boot?

or organise a clothes swap with your mates?

Teacher2301

£50 for water for 2 people seems very high - is it a metered property? If not then get your landlord to get one fixed. You might find this cost could be reduced - we have 4 people and only pay about £35 a month.

theoretica

Have you already looked at what mortgage you might be able to secure and how much deposit you would need to buy a property you like? You may well find that you need to be saving quite determinedly to be able to buy a property you are happy with in two years time. The money will build up faster if you borrow from your inheritance to pay off the cards and then set up a standing order (£500?) into a savings account and resolutely don't acquire any more debt or trespass into your deposit savings!