£1,750 - Advice on what to do?

Gibblet

Hey there guys,

Just a bit of money advice needed.

So, this month I got paid and got a nice bit of money on the side from something due to come in so I'll have about £1,750 left after some due payments.

I'm in significant debt (actually up by 800 this month) but I can easily manage to pay all my debts off monthly and still live. What do I do with the £1750? I'm not accruing any further interest on the debts but I don't want to just spend the £1750 on shiny things or stupid expenditures.

Should I put it into a savings account or am I looking at this the wrong way, is the £1750 really just money that I should pay to my creditors?

Toomuchdebt

Pay it off the debt.

Bored

I personally would use all of the cash to pay off debt. Unless you don't have an emergency fund in which case I would keep a portion back in a savings account (£500-£1000) for that purpose and use the remainder for debt repayment.

asparagus1968

i'd do £500 emergency fund, rest off the debt.

Gibblet

I don't have an emergency fund, that's why I was keen to keep part of it.

I could contribute £700 of it to debts and keep £1050? (I have this mental thing about breaking the £1000 mark)

Toomuchdebt

Gibblet wrote: »

I don't have an emergency fund, that's why I was keen to keep part of it.

I could contribute £700 of it to debts and keep £1050? (I have this mental thing about breaking the £1000 mark)

Other way round if you want to keep part of it for an emergency fund.I'd still be inclined to pay all of it off the debts-if you're anything like me any money you keep will just end up getting spent on rubbish-and as your debt is 800 up this month from last month I would say you definitely need to get it paid off asap.

Gibblet

The thing is, it's of no immediate benefit. I'm not paying any interest (it's all already paid off) and even if I pay off a chunk my monthly payments will still be just the same.

Also, I have a savings account that offers 5% that I can put 250 in each month but can't access for 12 months so I was thinking of moving it there.

Sharon87

Put it all into a savings account if nothing is accruing interest. Maybe if you have 2 savings account put some of it in one for debt payments when 0% interest expires and the rest as an emergency fund. I understand what you mean about the £1000 mark for emergency fund, it feels like you can survive a month on that if needed, whereas £700 will be a very tight month!

Gibblet

Here's a break down to perhaps paint a better picture:

Loan from Employer - £1600 (originally £1760, the interest of 160 was paid - Upped by £800 this month)
Payment per month: £160

Loan - £1100 (originally £1200 - Didn't have to make a payment for 3 months)
Payment per month: £100

Loan - £375 (full amount - Didn't have to make payments for 6 months)
Payment per month: £55

Loan - £3300 (originally £4000)
Payment per month: £350

Loan - £1900 (Originally 1900, due to a family member)
Payment per month: £0 at the moment

Loan - £700 (Originally 700, due to a family member)
Payment per month: £0 at the moment

Probably worth mentioning that the last two loans aren't causing any issue with family members, they want it paid back after the loans I had to take out earlier due to issue with moving house multiple times.

[Deleted User]

Personally (and this is purely a personal choice, rather than advice), I'd pay off the loan from my employer.

I don't like the idea of owing my employer money, as I'd feel beholden to them, and would feel like I had an obligation to help them out by, say, doing an extra shift, even if I had something else planned.

Also, having paid it off, I'd have an extra £160pm left in my pocket/account.

Toomuchdebt

My only issue is why was the loan from employer upped by 800?Is this likely to happen again?Are you going to struggle to pay things off in a few months?