Pleasant problem

Boromir

Hey fellow forumites

After fighting for years to get out of debt racked up through bad choice/ignorance I'm finally not in 'head-in-the-sand' debt any more. :j

I often read these forums and you seem like a friendly and informed lot, so I'd value your opinion on a pleasant problem - not a head-in-hands-er which was me for years, but no more, hooray!

My headscratcher is:

I have got down to "only" £6k of credit card debt (from £13k!) which is on two 0%-interest balance transfer cards: £3k on Virgin Money for 15 months, ending next month, and £3k on a Barclaycard, ending September (that is, interest free period ends).

So, Virgin card, almost due: I have tried to save £3k by this point - and have only managed £400.

I was planning on bouncing this £3k to another card, for another 2% fee, instead of the 18.9% interest (£50 a month!).

HOWEVER! Last week I was told that at the end of Feb I'm getting a totally unexpected (and un-budgeted-for) bonus from work for last year. This will result in a take-home of about the same as one of these cards. :beer:

So my question to fellow Forumites is: What would you do? Of course, the obvious is to thank my lucky stars and clear the debt *just* before it becomes interest-bearing.

• But as things have been far more thin than thick for the last couple of years, every penny scraped and saved, and just ahead of the debt-monster claiming me again, would you take, say, £1000 of this and blow it on a week away somewhere? Which is *sorely* needed believe me!

• Will I look around at colleagues doing similar and regret that the only thing changed for me is one less line on the 'debts' list I'm trying to clear?

• Is life really all about clearing debts?

your opinions are welcome!

Shelski_2

If you clear the cc debt, it will mean you are debt free quicker and can plan lots of holidays knowing you don't owe anything. Why don't you pay off the cc with the bonus but use the £400 for a short break somewhere. I used bonus money for a holiday and really regret it now. So wish I had cleared something, it would have made me feel so much better.

beth3735

I have to admit when i got £1200 from a PPI payment I booked me, my husband and my 3 children a week away to Tenerife, was the kids 1st abroad holiday. YES I could of paid it off my debt, and maybe YES i should of, but it was really needed and it really did the trick.

As much as you need to pay the debt off before the interest starts back again, i do feel as it was unexpected you need to enjoy a little of it, but pay as much of a chunk as you can off the 1st card to end the 0%.

somethingcorporate

Clear the debt and use what you would have paid back the debt with to save for a holiday.

Simples!

Don't try to keep up with your work colleagues, you have no idea whether they are living a secret life up to their eyes in debt!

JimmyTheWig

Use a token £100 for a night away in a Travelodge or similar.
Use the rest of the money (around £3300, from what you've said) to clear debts.

Whatever you do it is definitely worth clearing the Virgin card before interest becomes payable.

natsplatnat

Shelski wrote: »

If you clear the cc debt, it will mean you are debt free quicker and can plan lots of holidays knowing you don't owe anything. Why don't you pay off the cc with the bonus but use the £400 for a short break somewhere. I used bonus money for a holiday and really regret it now. So wish I had cleared something, it would have made me feel so much better.

Superb idea!!

Muhren

somethingcorporate wrote: »

Clear the debt and use what you would have paid back the debt with to save for a holiday.

Simples!

Don't try to keep up with your work colleagues, you have no idea whether they are living a secret life up to their eyes in debt!

I agree with you on this, get the debt paid off.

Just think you will save yourself £200 in interest payments alone in 4 months if you weren't able to bt away for your virgin cc.

stephane_2

Life is just not about debt.....Pay some of it with bonus but have a FANTASTIC well deserved holiday at the same time....
I cannot believe that anyone here would not use some to have a luxury holidays....

kwmlondon

I'd say get a bargain long weekend away somewhere for a couple of hundred quid, allow yourself a hundred spending money and then put the rest against debts. Don't forget, that will allow you to either put all your cash against the remaining debt or put MOST of it against your remaining debt and allow yourself one well-deserved treat a month, like a nice meal or wotnot. Like someone here said, you have to live life AND pay off your debt.

Florida2013

Lucky you! I think I'd kick myself if I spent any of it on a holiday when I still had a significant debt to pay.

I'd pay off one card and focus on spending the rest of the year paying off the other with a view to a couple of weeks in the sun next summer. Just think - half of your debt could be wiped out instantly!

Well done on getting as far as you have with your debt.

jubilee14

Do you have an emergency fund? As holiday is all well and nice and getting debt free soonest is probably best way to go. but having just had to fork out money since my washing machine has gone in the same month of the MOT of car this might be another option just to give you some comfort for those part of life moments.