What to do?

whiteroom184

Good morning all Money savers!

I need some advice on what to do with 10k

I have recently received my bonus and have cashed in some shares i had received from my employer and it gives me a total of 10k

i have just separated from my husband and as such some even tighter budgeting has had to come about.

debts
mortgage - 174k payments £918 2.99%
virgin cc - 3.4k payments £80 standard apr
halifax cc - 5.1k payments £120 standard apr
Barclaycard - 4.7k payments £100 standard apr
Loan - 3k - payments £247 12 months left

following separation at current spending remainder of free income is £100 per month, this is with all other bills paid, gas, elec, ctax, food, petrol, water, childcare, tv license etc

What do you guys think will be the best use of this 10k? to give me a larger disposable income and reduce the cost of my borrowing. I have tried shifting my CC debts to cheaper cards but have been refused twice. Re-mortgaging is not necessarily an option as i only have 74% LTV. Whenever i run a credit check it states i have an excellent profile as have never missed or failed payments

Any suggestions gratefully received!

orcocan

hi there, i'd say just pay off your credit cards? then cancel them or keep only 1...

i'm sure many will think it's a good problem to have :-)

whiteroom184

orcocan wrote: »

i'm sure many will think it's a good problem to have :-)

thanks!

i know its a good thing, its just i dont want to screw it up!! (again);)

orcocan

paying off debt you can't really go wrong... just make sure you pay off the highest aprs, post them here if you want

get rid of your credit cards as well, if your income is more than your outgoings and you can save a bit every month (as it should be) then you don't need them and once you don't have them there's no temptation to overspend. Use this chance to take a fresh start on your finances

Time_to_face_the_music

What are the APRs on your CCs and loan?

I would pay off in order of high interest and then cancel that/those card/s.

Well done on the bonus and wanting to sort this out :T

whiteroom184

Time_to_face_the_music wrote: »

What are the APRs on your CCs and loan?

:T

Virgin & Halifax 17.9%, Barclaycard 18.9% and loan 7.2%

triple_choc_chip

whiteroom184 wrote: »

Good morning all Money savers!

I need some advice on what to do with 10k

Any suggestions gratefully received!

All donations gratefully received!

Seriously though if you really don't want to transfer it all to me, I would suggest paying off the top two credit cards and keeping the balance of it as an emergency fund. The £100 surplus you have each month isn't much if something goes wrong with the car/boiler/washing machine etc.

The payments of £200 a month that you're currently paying on the two cards can redirected towards the remaining card or used to make living a bit easier depending on your outgoings each month.

whiteroom184

triple_choc_chip wrote: »

All donations gratefully received!

Seriously though if you really don't want to transfer it all to me,

LOL thanks.............. i'll remember you if i win the lottery then! :money:

Time_to_face_the_music

whiteroom184 wrote: »

Virgin & Halifax 17.9%, Barclaycard 18.9% and loan 7.2%

I would completely pay off Barclaycard and Halifax then use the remainder towards Virgin.

If you then used previous Barclaycard and Halifax payments to Virgin, all your CC debt could be gone in less than a year :j

theoretica

Time_to_face_the_music wrote: »

I would completely pay off Barclaycard and Halifax then use the remainder towards Virgin.

If you then used previous Barclaycard and Halifax payments to Virgin, all your CC debt could be gone in less than a year :j

After you have paid the first CCs off if might be worth calling them to ask if they can offer you a deal on a balance transfer to move the remaining CC debt to 0%.

Bufger

whiteroom184 wrote: »

Virgin & Halifax 17.9%, Barclaycard 18.9% and loan 7.2%

Fully pay off the Virgin and Halifax cards and put the remainder on against your Barclaycard. Then use the payments you would have made on those two cards to snowball the barclaycard and then finally the loan.

This way you'll clear it very fast and then all the payments you were making can be turned into savings if you keep living the same lifestyle.