What to do?

Ooraoop

This is probably a really silly question cause the answer is probably staring me in the face, but I just wanted other peoples opinions please :-)

Currently I have
£4000 savings
£0 in the bank (payday next Friday no bills to pay till then)

But I owe
£115 credit card (0 interest)
£200 overdraft (0 interest)
£185 to a friend

So I have £500 debt, and I could just take £500 out of savings and pay it off or I could just carry on paying it monthly until it's cleared as there is no interest.

The only reason I ask this really odd question is I have worked so hard to save this money and don't feel like I can touch it? My partner says it's silly cause I'm putting this money aside and never touch it and I'll just do this forever and never enjoy it. I am saving for a few big holidays in the next few years Vegas China etc so that will be a lot but I just wondered if anyone else has the same problem as me and really can't touch their hard earned savings?!

Thanks :rotfl:

ellesbellesxxx

It doesn't seem fair to owe money to a friend (who has also worked hard for their money!) when you have the money sat there doing nothing.
pay off your friend if nothing else!
Personally I would pay off overdraft and CC then replenish asap when you get paid.

pmd123

I agree with the above, curious why you would feel the need to borrow money from a friend when you have £4k in savings, but sure there was a reason for it.

Ooraoop

Lol thanks for the feedback, I didn't ask the friend for money it was a holiday for a few people that was paid for on one card online and I was going to pay them on Friday when I got paid but didn't know if I should just do it now or wait till Friday. Also they more of family and are not short of cash in any way :-D

pmd123

If it were me, I'd get rid of the debt, and build up the savings again, it's not like it's going to take most of your savings to pay it all off. Wish £500 was all the outstanding debt I had to pay off :rotfl:

dktreesea

Not having any debt at all is a great feeling. Pay off the debts. You will feel liberated, knowing you have no obligations to other people and that all the money you earn is yours.

Ooraoop

Thanks guys going to pay them off tomorrow :-)

[Deleted User]

Ooraoop wrote: »

it was a holiday for a few people that was paid for on one card online

Is this friend paying interest on the card?

If so, then it is doubly unfair to let them wait to be paid.

In your shoes, I'd pay all the debts off.

Indeed, I'd go a step further and put enough in the account, to cover a whole month of DDs and SOs, thereby providing a buffer against a late salary payment.

That's the situation I'm in now.

Ooraoop

No it's a debit card and that's a good idea, is that kind of the theory YNAB goes by? I'm in the process of changing jobs and will have a smaller pay packet for 1 month as going away on honeymoon in between so going to be unemployed for about 3 weeks :-O lol

sourcrates

OP, its a bit of a "non post" this really.
You can easily pay these debts back, so just do it and move on.
Not wanting to sound harsh at all, as this may be an issue for you, but there are lots of folk on this forum with debts 1000x greater than this, and some are in real trouble, whereas you can easily clear this, so that's what my advice would be. :cool: