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pay off debt or have a bit of fun?

hiya

couldn't think of a better title! :)

my situation is that my boyfriend, who i live with, has lost his job. I hope this to be a temporary measure but im planning for the worst case scenario!

We currently rent an expensive house but need to wait 5 months 'til the tenancy is up. We can then move to a cheaper house, change the broadband, utilities etc and cut the costs down.

my question is - should I be spending all spare cash on paying off debt or making sure I actually have some money each month to live a little - for the odd night out or new handbag (im talking primark, not prada).

what do you think should have priority?

my debt isnt overly massive, about 5k on a couple of credit cards, the majority of which is interest free, and a 500 pound overdraft.

my spare cash each month, after giving boyfriend an allowance and putting 50 quid into savings for emergency/car/christmas/b-day presents is 250 quid. I was thinking 150 to the credit cards and 100 to me.
Anything i earn extra (ebay etc) will go into the emergency savings or for specific nights out (eg friends hen night)

I'd welcome anyones opinions on whether I could do this a better way please.

thanks! :)

Comments

  • Dellers
    Dellers Posts: 204 Forumite
    Forget about the primarni handbags and pay off the 5k debt plus the 500 overdraft.
  • Pay off the debt, it may be interest free now but will get harder to pay the longer you leave it.
    :laugh:
    Free at last
  • If the worst should happen and you also loose your job, you'll be stuck!

    Get rid of the debts - spend spare cash on yourself as a treat!

    Debts ALWAYS first!
  • You're taking a bit of a risk in assuming that the debt will stay at 0% and that you'll always have a steady job.

    If it were me, I'd put more money to ridding myself of the debt quickly, and look forward to 12-18 months from now when I'd be debt free and have the whole £350/month to myself. So I'd pay it off now. You're going to have to sooner or later. Get rid of it!
  • CH27
    CH27 Posts: 5,531 Forumite
    Pay the debt off.
    Try to be a rainbow in someone's cloud.
  • Definately pay off the debts, you never know what's around the corner - and you don't know how long you BF will be out of work.

    You have said that most is on 0% (For how long? and what will the interest revert to then), start by overpaying on any debt that is not 0%, or perhapse the overdraft is a good place to start if you are being charged interest/paying a fee
  • Barneysmom
    Barneysmom Posts: 10,130 Ambassador
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    £200 to cards, £50 to you. You don't need another handbag :)
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  • seehar
    seehar Posts: 53 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    hi all,

    thanks for replying :)

    I think I knew deep down I should repay the debts, just needed to be told, if you know what I mean!

    I've re-jigged the finances and can pay 130 a month off now, then when we move, up that to 350 and if I can persuade BF to give me some of his dole, up to about 450 a month.

    the interest free runs out in 9 months to a year, so can pay off the bulk of it, then might be able to shuffle it around again (hopefully) for the last few months :)

    the overdraft - im aiming to pay off only 25/30 quid a month, by cutting the food budget, phone bill etc, but that is on a low interest rate, and 250 quid is interest free. Gunna concentrate on the credit cards really :)

    If I want to go out, ill just have to ebay stuff or make some cash some other way!

    Seehar
  • seehar
    seehar Posts: 53 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    oh and I shouldn't have mentioned the handbags!! I really don't shop that much!!!! was just an example that sometimes I would like to spend money on myself :)
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