Best 2 year home for £20k windfall

DiamondLil

Ryan_Futuristics wrote: »

I've got to say your whole approach to money needs to change ... And you'll be a lot better off for it

There's no point earning 2-3% interest on £20k when you're paying 5.6% interest on £27k ... Not clearing debts when you've got the opportunity is simply giving away money - it's choosing to limit your financial freedom and ability to save ... It's what friends of mine with poor money management (who I'm always bailing out) do instinctively

To put it another way: if it takes you 8 years to save £20k, does it take you 11 years to pay off this debt?

No ... What everyone with bad money management does is focus on lump sums and ignore cash flow ... You need to fix your cash flow before you can build any wealth ... There are no two ways about it

Pay off £20k immediately - pay off the other 7 as quickly as possible (debt is the enemy ... Don't ever be in debt) ... Then use whatever money you would've been paying on that debt to save - set up a standing order

I know it might seem like having the money in your hand makes more sense - it REALLY doesn't ... You'll just accumulate debt again ... It's the way to keep the working man down ... All you're doing is paying banker's bonuses ... You can always save money and cut your outgoings

Oh, how right this is.