What do i do?

bramble1

I am due to inherit some money, how much i'm not sure.

We currently owe in the region of £10,000 in debt.

Do I use the money to pay off as much debt as possible? We are looking to get married and this money could be used for the wedding.

I don't know what the right thing to do it.

Pay off the debt, be free of debt, with bad credit, no saving and no chance of saving anything towards the wedding, therefore not get married (not in a spoilt brat way, just OH is self employed so it's nearly impossible to save, so we simply won't afford to get married). OR keep paying off the debt as i am now, and use the money towards my wedding?

Learning2Budget

Clear the debt but maybe put a small proportion to the wedding. i always find its easier to save.once you have a little saved (don't know if that makes sense)?
L2B.x

MusicalLawyer

Do you have one debt of £10k, or is it split over various CC's and Loans?

If you're currently making re payments on your debts, then You could pay off the one, or two, debts which have the highest interest rates and then use the rest of the money for a wedding. Or Set aside an amount for the wedding, and use the rest to try and get Settlements with your creditors.


Aternatively you could;
1)Use all the money to pay on your debts
2) Use all the money on a wedding

immoral_angeluk

If you are unable to save you're also never going to be able to get rid of the debt without it taking you decades to repay it. On that basis I would pay off the debt, and have a low key wedding. Starting married life in heaps of debt is not a good position to be in. Debt/money problems are a very big cause of divorces and separations!

bramble1

lots of debts that total to around £10k - i'm struggling to find the enthusiam to pay off the debts, because at the end of it, I'll still have bad credit, won't really be any better off financially etc. So don't really want to waste my money

immoral_angeluk

bramble1 wrote: »

lots of debts that total to around £10k - i'm struggling to find the enthusiam to pay off the debts, because at the end of it, I'll still have bad credit, won't really be any better off financially etc. So don't really want to waste my money

Of course you'll be better off. Your credit rating will look better with the accounts settled, you won't be paying ridiculous interest and won't have all those payments to make, meaning you'd have extra disposable income which you could save towards the wedding...
Once they're clear you can also start rebuilding your credit.

MusicalLawyer

You will only have bad credit for as long as the defaults are on your file. After that period you will have good credit.

If you pay anything off towards your debts currently, you will be better off financially.
When you start paying off your debts you will feel so much better about everything in general.

I think you should try and come to Full and Final Settlements on your debts, which would lead you with some money for a wedding. If it isn't enough money for a wedding, then put it in to a 12 month fixed savings account, as you can't withdraw the money, and gain interest on it until you are able to afford the wedding you want.

BlushingRose

How about half/half?

cjd2206

What sort of debts are they? Are they credit cards with no end in sight, or a set repayment term like a loan or car HP? I would probably pay any credit cards/payday loan first.

You could have a beautiful wedding on a budget, especially if you are crafty And the most important thing about a wedding is the marriage (and the right partner :rotfl:)

missrlr

Have you asked your OH?
debt busting would be best long term.
Do sOA then
Snowball the debt see what effect paying the more expensive ones woudl be
Could you pay say half the debt and throw the money you are currently paying these debts to the remaining ones then roll over to wedding pot and delay wedding til this is done?

Or if more left after above paying expensive dents, budget wedding, stick half of budget in ISA use final balance to pay off more debts and snow ball as above, but tell OH wedding budget has be met by savings jointly.

Debts is not a place you what to start a marriage in, I wedded my debts it is not nice.

jayss

The more you pay off the more you are freeing money up to be used for other debts and eventually savings.

Get rid of anything that is crippling you with interest.

Do you need to have an expensive wedding? Putting some aside for it will probably make you feel pretty good, and make the ongoing debt busting a little easier to bear. You can always change your mind and use it for repayments later.