Pay off debt v save for maternity leave?

Caroelle

But the point is that even if money is moved from interest free to interest free, it is still a debt. And if something happens, and the OP can't pay it off, it is going to be a constant worry. There could come a point when it can't be moved again, and the interest has to be paid. I was looking at the bankruptcy forums yesterday, and it is scary how a sudden change in circumstances can suddenly tip people over the edge. A bonus that is cut, the high cost of child care, an increase in the mortgage rate, can all send finances into free fall. To be in that position, having used up savings, and have a large debt that also needs paying off would be stressful for a lot of people. So I guess that it depends on whether you can ignore the debt, and think that you have money in the bank, or face the fact that whilst you owe people money, that is always going to need paying off.

On_my_way

I'm afraid that I would pay off the debt and make sure that you have a budget, don't buy too much for the baby as people will give you stuff, presents etc but at least you won't have the debt hanging over your head and taking your maternity pay!

mrso2b

Thanks everyone. OH and I are going to sit down and budget for the year ahead and see what is the best option.

Would love to be debt free!! Feel like transferring it on to another 0% would still be debt.

I've been good with buying stuff for the baby. We got given a cot and grandma paid for the pram. Clothes have all been brought from the sale. I've been knitting too!

mrso2b

Newmum - we have the 10 return to work days too, that's a great idea to use them up in the unpaid period! And on those days OH can look after baby - thanks for the tip

mrso2b

I've also saved up half a years holiday so I can take a month off as paid holiday at the end of mat leave and I get a £1000 bonus 3 months after I return to work.

Thanks all for making me work this a through! It has really helped

[Deleted User]

Please resist the temptation to buy "cute" items, that the baby will never use.

I know someone, who spent nearly £50, on a pair of brand named training shoes, for their week old baby.

The baby obviously never took a single step in them, and they now languish, unmarked, in a drawer.

mrso2b

Thanks everyone.

I paid off the credit card that was coming off its 0%... Feels good!!

Now left with just over £2,500 debt which is less than I thought it was!! Thought it was more like £4k!!

Going to try and be careful now as one months salary could pay that off....