What should we do?

lynseydee

We will be completing our re-mortgage tomorrow and the plan was that as we are going for an interest only mortgage I would clear my loan and credit card and then we will revert back to a repayment mortgage. I also have a credit card in my name but this is a joint debt with my husband. I have managed to transfer to this card at a LOB of 5.9% from Cahoot's loan rate of 14.9% so this card will take less priority over my other credit card and loan. My question is this:

As our re-mortgage is completing tomorrow and we made a payment on Tuesday we will be due the majority of that payment back (probably in the region of £700.00). Should we a) pay it off towards the joint credit card b) use to towards decorating the next room in our house c) use it for a cheap holiday which we probably won't be able to afford this year like last year or d) open up a cash isa together and deposit it into savings. I would like to be able to do all four options but my sensible head keeps telling me which is the best option.

What does everyone else think?

immoral_angeluk

I don't know anything about mortgages as we rent but I would definately use the money to pay off your credit card and then cancel it.

Storm

I would vote for putting it towards the CC too.

Decorating - you really don't need £700 to re-decorate 1 room & hopefully you should have a 'house repairs' budget in your SoA
Holiday - I know where you're coming from, but a year without a holiday or a very cheap one in the UK won't kill you & it'll mean you're debt-free quicker
ISA - the interest you gain won't counter the interest you'll be charged

taxi73

Hi there...I would pay it off the credit card myself as decorating can wait as can a holiday ...the credit cards are the most important as they incurr interest

lyric_grace

If you really want a hoiliday why not look for some cheap rooms at holiday inn like the supersaver ones which I believe are £10 if you book in advance, then book a couple of nights somewhere in the uk, then use the rest for the credit card. Also you could maybe find a cheap train deal if far enough in advance? Thus using less than £100 of the money and deffinatly use the rest for the credit card.

lynseydee

Hi Storm, I didn't mean spend the whole £700.00 on decorating lol

I guess the in-laws will have to put up with us again this year. I stupidly thought we might have been able to make a bit of interest on it with putting it in a cash isa but I suppose there wouldn't be one that paid more than 5.9%so I guess we will be going with my sensible head and putting it towards the cc. Only £3,860.00 to go then.