new job, time for new plans.

midlander81

Hi folks,


not posted for a while.


I got a new job from January which means that I will have an additional £315 take home pay per month. Not sure whether to throw it all at debts or to build up a decent emergency fund?


I currently pay £1115 of my wages towards our debts each month so I am already making hefty overpayments.


What would you do?

sithemadmonkey

Do you currently have an emergency fund of any kind? If not, I would definitely go for that rather than paying down debts, at least to begin with. Always best to be sure that, if the new job doesn't end up the way you've hoped, you've got a safety cushion to help you out for a bit.

asparagus1968

Hi, what debts do you have and how much interest do they charge?
I'd probably do £100 a month emergency, £200 debt,£15 treat fund

Determined_diva

Hi there
Like Asparagus I would split it, but I would do £200 emergency, £100 debt, £15 treat at first just to make sure you have a fund incase it doesnt work out for you... if it does then you can always transfer some of the savings over to debt at a later stage

DDx

midlander81

asparagus1968 wrote: »

Hi, what debts do you have and how much interest do they charge?
I'd probably do £100 a month emergency, £200 debt,£15 treat fund

Hi Asparagus,


We started our debt free journey a few months ago with a scary 40k debt so quite a lot!! On the plus side we are able to pay the best part of £1500 per month with most of the debts being either 0% or low interest so we can expect to be debt free in 2 years.

nprabz

midlander81 wrote: »

Hi folks,


not posted for a while.


I got a new job from January which means that I will have an additional £315 take home pay per month. Not sure whether to throw it all at debts or to build up a decent emergency fund?


I currently pay £1115 of my wages towards our debts each month so I am already making hefty overpayments.


What would you do?

Yes - absolutely - build an emergency fund - for that unexpected repair, service call, unexpected circumstances that takes you out of work for a few days, etc

Toomuchtodo

If you don't have an emergency fund already I would put it all to that up to a set amount, then start adding it to debt repayment. I am currently building up my EF as I figured that if an emergency comes up it would end up on the cc, so better to be prepared!