My dilemma today....

Jesseonhistravels

Hubby has just had £6k paid into our account which is an interest free loan from his company to pay for his season ticket (travel) to work. Each month his salary will be deducted for 10 months to pay back.
However, we've been thinking we could pay back 2 of our 3 credit cards to zero balance with this interest free cash and would leave more money to put on the other card and leave us in a better financial situation each month? yes we would still have to buy his train ticket each month.

My concern was that his company would find out and he could be in trouble for not buying the season ticket but how would they find out?

What would you do?

Thanks!

dfwsometimesoon

whats the cost for ticket per month compared to the season ticket price? danger is u use it for cards and then end up worse off having the cost deducted each month from salary and paying out for ticket.....

10 months to pay it back :O thats £600 deduction from wage every month is that right? i would be inclined just to use for the season ticket to be honest however tempting to use otherwise ... £600 reduction in salary plus a min £600 for ticket ( going on the assumption that season ticket works out cheaper) is a heck of a lot to be paying out ..... if u can afford to pay out an extra £600 per month pay the cards of that way either way all be paid off in 10 months rather than confusing things and am sure if company found out they may not be to happy x thats just my opinion tho

RAS

In my area a monthly ticket costs £132 (£1584) and an annual ticket costs £1382, so the extra cost is over £200.

You tickets are much more expensive so I suspect it will cost you an extra £1000 or more to buy monthly tickets.

Doubt you can save that much in interest?

Jesseonhistravels

Its £489 each month(direct to train company) or £5100 each year which would be £510 paid back from his salary each month.

kimminess

Hi,

I would be inclined to buy the season ticket. Personally, I wouldn't want to take ANY risk of not being able to afford your OH's train ticket each month if an emergency spend crops up, as how would he explain to work he can't make it in?

Having that provision there to get him to work and back every day means he has a constant wage coming in to pay off your debts as and when you can

Although it might seem that they could never find out you didn't use the loan for it's intended purpose, I personally wouldn't want to take that chance!!

Just my 2 cents Hope it helps! x

RAS

Jesseonhistravels wrote: »

Its £489 each month(direct to train company) or £5100 each year which would be £510 paid back from his salary each month.

Work out how to use the two months when you have nothing to pay back to pay off some of the cards?

And have you already shuffled the debts on the cards effectively?

WestonDave

The only way I would mess with this loan rather than spending it straight on ensuring he can get to work, is if you can get an interest free credit card with a big enough balance to buy the season ticket, and then use the "cash" to pay off higher interest cards. However I suspect if you already have a fair bit on cards, your chances of getting a high enough interest free limit are slim so just get the ST!

Jesseonhistravels

Thanks folks - you have all confirmed my doubts. I am an honest John and the thought of his company getting a whiff of it would freak me and them too!

Thanks again for your wonderful advice.