Bit of a windfall

taffy056

Just been given details of a small windfall circa £6k that is winging itself to me right now I have a couple of debts between myself and the wife, but we are trying to save a large deposit for a house. Was wondering what you suggest I should do

Credit Card - £990 - 25% apr - £43 a month
Credit Card 2 - £250 - 30% apr - £10 a month
Car Loan - £7000 - 20% apr - £182 a month

I can get an early settlement figure on the car loan which should bring the costs down, basically I can pay off all the debts, and have a small amount left over, or maybe pay the cards only.

Would appreciate some advice - thanks.

lamarsi

personally i would pay them off as the interest amounts are .. well.. shocking!! congrats on the windfall btw

taffy056

Yeah the apr's are high , but needs must at the time I took them out, I was thinking about paying the cards off in any case, but not sure about the car as it would take practically all the cash. Still we are not struggling so maybe there's sense in that.

princess*daisy

Pay off the debts! Everyone on here will tell you that it is pointless having savings if you are in debt. Plus, you will be in a much better financial position when you come to buy a house and are more likely to get a mortgage if you're not saddled with debt. Good luck.

Chrisblue1962

princess*daisy wrote: »

Pay off the debts! Everyone on here will tell you that it is pointless having savings if you are in debt. Plus, you will be in a much better financial position when you come to buy a house and are more likely to get a mortgage if you're not saddled with debt. Good luck.

...couldn't agree more than other advice already given. Well Done on the windfall. :T