Almost Debt free - Stash or Pay Off Debts?

boxerdog1999

Hi,

I think I already know the answer but I just want someone to reassure me that I'm doing the right thing!

My house sale completed today and I'm now living in rented accomodation and mortgage free! Of the c.£40k equity, I owe around £19k to 4 credit cards. I'm in no rush to buy another property, so plan to clear all my debts and then start saving to bring me back up to £40k +. On the basis that my rent is £100 less than my mortgage was and I won't be paying £400 plus off my credit cards, I think this is the right way to go.

Anyone agree/disagree?

Thanks,
Boxerd!!!999

Tixy

:j Well done on becoming debt free (well very soon to be anyway).

Definitely clear all the debts and then start saving again.

If you can save £500 per month back to your savings that would be great.
Hope you find somewhere with reasonable interest for your left over equity, remember to use your ISA cash allowance for tax free savings if you haven't already got one this year.

Tamrin

I agree definately pay off your debts, you know it makes sense:)