Cripes Alive! What shall I do with it?!

festivalgirl73

Hi All,
I'm posting this as I've noone else to talk to til my other half gets home, I've just had £4000 arrive on my doorstep and I don't know what to do with it!!
My parents have just completed on their new flat, they downsized and bless them they have split the difference between myself and my 3 brothers and sisters and a cheque has just come through the post, I had no idea this was coming its a complete shock :T

But now I don't know what to do with it, I'm in the midst of organising my own DMP as when I apporoached Payplan they were unable to help as I had a deficit in the income, I have now managed to reorganise and cutback so there is no deficit but still not enough surplus to get an organised DMP, its going ok, half of the creditors have been accepting of the token payments for the time being, but my debts are a scary unsecured £35K and so this is not going to be able to get shot of any of them really and even if it could (I may be able to offer a full and final to a couple of creditors) it would still leave me defaulting on the others, I also don't know if this is a wise and respectful way to use my parents money.
I don't want to just put it in the bank and slowly fritter it away on everyday living and I don't want to buy something frivalous with it and then wish I'd kept it.
My little devil on my shoulder is trying to pursuade me to buy a campervan! My car is on its way out and we had a campervan a few years ago and the kids had the best holidays ever in it, but we ended up losing money on it as it was a rust bucket. I don't want to make that mistake again!
I'm all of a muddle, so thought I'd ask you peeps what you think, I may not be back straight away as I'm off to walk the dog and have a think.

gonzo127

well great news and i think your parents deserve some serious thanks

since i dont know your full situation with a SOA i cant help too much, however have you thought about a mix and match approach

use some (say 1/2, £2000) on full and finals if you have debts that could be settled this way

use £1000 on buying some 'things'

put the other £1000 away for a rainy day

pepe2008

Well as a long-time owner of a '72 VW Camper I'd say get a Camper!

You could pick up a good, solid, Type 25VW ( the square one) for £2500 and they are beginning to appreciate fast. Avoid early air-cooled, nothing decent for less than £5000.

£100 a year to insure and mega-cheap brilliant holidays....and something to show for the money.

Tixy

Hi

Well that is good news. Very difficult to decide what is the best thing to do with it. But glad you are going to think about it carefully before you make any decisions.

Here are just some of my thoughts for you to think about.
Maybe as you are in early stages of your DMP it might be worth waiting to see how things 'pan out' over the next 6months or so. As you say you are going to get some defaults anyway so rather than trying to F&F any now it would be better to wait until you have been defaulted, perhaps the debt sold on before when you could get much better deals (if you decide to spend it on your debts).

Only you know what is right for your situation - with regards to that is your DMP amount likely to remain as it is for a long while or do you anticipate changes that will allow you to increase the amount in the future (better income/new job/more hours as children get older/less childcare fees etc)? Have you looked at the snowball calculator and how long is your DMP expected to last currently? what difference would £4k make to that?

Finally - do you parents know about the situation with your debts/DMP etc? Although I'm sure the gift was given totally without obligation as to what you spend it on what do you think they would rather you spent it on? if you repay it on debts will they turn round and ask what you bought with it?

I'm sure you will make the right decision for you - just don't rush into anything!

JA1000

Debt first I am afraid, if you post some details of the £35k breakdown you will get an idea. You have spent so you must pay, by spending this you will only be adding to it. This could give you the momentum and determination to get the rid of that debt and with this there will be less than 90% to go.

Have you discussed your debt with your parents. Now they have downsized they maybe able to help, you are better off paying them repayment with nominal interest, it would be more than they get in the bank and you get out of debt.

pepe2008

Tixy being sensible again:D....but good advice all the same;)

Tixy

pepe2008 wrote: »

Tixy being sensible again:D....but good advice all the same;)

I nearly ended with "oooo- a campervan, I've always wanted one"

DGJsaver

JA1000 wrote: »

Debt first I am afraid, if you post some details of the £35k breakdown you will get an idea. You have spent so you must pay, by spending this you will only be adding to it. This could give you the momentum and determination to get the rid of that debt and with this there will be less than 90% to go.

Have you discussed your debt with your parents. Now they have downsized they maybe able to help, you are better off paying them repayment with nominal interest, it would be more than they get in the bank and you get out of debt.

90% over 148 years...

Get the camper van:beer:

festivalgirl73

Ahh, thanks so far for all your replies, Pepe2008 I think you are that little devil sitting on my shoulder!!
Funnily enough I have been coming up with the very same thoughts as I was walking, I was thinking perhaps the best thing would be to put half away for the event that the full and finals may be more approachable 6 months down the line, I read on here recently that someone settled a £10k debt with MBNA with a £2000 final settlement?! My MBNA debt is £5k so perhaps £1000 would wipe that one off at some point??

I have every intention of increasing my payments as soon as I can find a 3rd job that will fit in with the last pockets of time I have to work round the kids, have been trying to do Avon but it doesn't seem to be paying me diddly squat at the moment!

I'm certainly not going to make any rash decisions anyway which for me is a great achievement I have always been terribly bad at that, and it has got me into trouble!

My parents are aware of my debt problems however they don't know the extent, I don't think they would be in a position to help anymore and I wouldn't ask them anyway. I'm just about to ring them and say a big thankyou and I'm going to run past them what they think I should do, I'm pretty sure that after my last experience with my 1975 VW Bay that the bottom almost dropped out of they will be against me spending it on a similar purchase but who knows, they wouldn't stop me they would just make a big TUT!

festivalgirl73

Just spoken to my dear old Dad, his words were "I don't really want you paying off your debt with it, use to it to have a bloody good time!" I wonder where I got my frivalous nature from??!

Anyway when I mentioned a campervan he said "Don't you dare!" But when I said if I did it again I'd get it AA inspected first this time and that my £200 car was on its last legs he mellowed a bit.

Still thinking and pondering, need to stop myself going onto Ebay to look!

I do think I should keep some for the debts, it would be highly stupid not to I think. OOOOOH what a quandry..........................?

pepe2008

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Baaad Pepe!

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