Advice on what to do with my money!

elly-spendaholic

Hi guys and gals, not posted properly on here for a few weeks- been mad saving and doing far too much work, but have been reading how everyone is getting on!

Right, I have managed to save £1500 in a couple of months and want you advice on what I should do with it. I have a few options and can't decide which one to go for.

I owe £1000 in BNPL items on my very account, but these aren't due until Nov- but if I pay it off now I could close the account

I have a loan with just over a year left to run, and owe approx £1050..this costs me £86 per month. So could pay this off and have one less commitment?

I could pay a whack off my credit card..which will bring the minimum payment down..or I could maybe split it and pay a bit off a few debts, or save it??? Just worried if I save it my spendaholic ways will return and I will waste it on rubbish..

look forward to your help as always!

camuk81

What's the apr on all these lending agreements

elly-spendaholic

Good question..CC is 28.9%, very 39.7% (athough with BNPL items if you pay in full before the deadline date you don't get charged interest, which in this case is Nov) and no idea on the loan- I can't find the paperwork for it grr..I'm so bad with this sort of thing! Just not sure which will be the best to pay as I want to feel like it can take a chunk out of something I owe..

MFWannabe

If you pay it off your cc will you be able to save enough again by November to pay Very
Are you able to pay your loan off early with no penalty?

elly-spendaholic

Hi, yes I have been told I can pay it off early without penalty, just would need a final settlement figure- that would then save me £86 a month...and yes now I'm becoming a bit better with money think I could save up another couple of thousand by Autumn, just need to see debts going away or I will start to wonder if its all worth it.

MFWannabe

I'm guessing the APR on the loan wouldn't be as high as the CC though?
Can you save enough again by Nov to pay off Very? If you can then i would pay a chunk off the cc as this is high interest. If the answer is no then i would consider paying off Very

[Deleted User]

You should overpay on the debt that is costing you the most in interest, so that would be the CC.

This would only be worthwhile if you will be in a position to pay off the VERY account in full in Nov, as the APR will be very high on that account then [if needs be, could you pay/part pay it with the CC?]

If you do decide to overpay on the CC, then my suggestion would be to increase the amount you are paying them so that you continue to pay the same each month as you are now [above minimum payment].

If you decide that you'll not be able to re-save enough between now and Nov to pay the VERY account, then pay this off in full now [so the money doesn't burn a hole in your pocket], and any surplus pay towards the CC.

HTH

D9

edgex

elly-spendaholic wrote: »

Hi guys and gals, not posted properly on here for a few weeks- been mad saving and doing far too much work, but have been reading how everyone is getting on!

Right, I have managed to save £1500 in a couple of months and want you advice on what I should do with it. I have a few options and can't decide which one to go for.

I owe £1000 in BNPL items on my very account, but these aren't due until Nov- but if I pay it off now I could close the account

I have a loan with just over a year left to run, and owe approx £1050..this costs me £86 per month. So could pay this off and have one less commitment?

I could pay a whack off my credit card..which will bring the minimum payment down..or I could maybe split it and pay a bit off a few debts, or save it??? Just worried if I save it my spendaholic ways will return and I will waste it on rubbish..

look forward to your help as always!

pay off your very account, that leaves you with £500

put this £500 to your credit card, but DO NOT reduce your payment amount

then start saving up again to clear the £1050 loan
once that is paid off, increase your cc payments

elly-spendaholic

Thanks for all the advice- will take it all onboard. Yes should be able to save again- I'm hoping to put away between £1500/£2000 every 3 to 4 months unless something bad happens..getting used to cutting back and saving now, just wish I'd started this years ago! I guess I wish I could pay it all off at once- just got to stay patient and focused..