Savings vs debt-free

maggie_12

Hi, looking for your opinions and suggestions please!

My flat is finally selling after being on the market for a year and 3 months :j. I have about £5k left to do what I please with once all fees/bills etc come off.

I am definitely using about half of that on windows for the new house I bought and moved into a couple of months ago. The windows are needed otherwise I'll be heading for an extremely cold and draughty winter and even higher fuel bills!

With what's left I have a choice:
1 - put to savings (my boyfriend is facing possible redundancy come Nov so could be a lifeline to add to the small amount of back up money we already have) or
2 - pay a massive chunk to my credit card balance leaving me with just £400 hundred pounds left to pay (which is very appealing as I have been paying off this credit card for more years than I can remember. I haven't used it to buy anything for years, all I'm doing is paying it off, slowly!)

Your thoughts/suggestions/opinions of what would be the better idea would be beneficial .

Thank you
C.

DarnIt_3

CREDIT CARD...Clear your debts!!!

You are paying interest on your debts which would go up at a higher rate than your savings...then when it is paid off put the money you normally spend on you CC's into a savings account.

Angyles

I agree with DarnIt, clear the debt first then start to build up savings.

nancmat

Credit-card.. no brainer

maggie_12

Cheers everyone!!! I thought it made sense to pay off the cc but also doesn't feel right not to get some savings from the money. CC it is.........I think a bottle of champers shall be consumed when the last payment is made, I'm sure I've been paying off credit cards since I was 21 (I'm now 32).