Save or clear these debts?

theoretica

Do your relatives know they have lent you money which has, in effect, been put into savings? If not I think you should offer to pay them back, and tell them you would otherwise put the money into savings.

enthusiasticsaver

I would pay your relatives and the Next bill and part of the Capital one card this month and Barclaycard by end of August. No point in saving if you have debt. We have always saved immediately we get paid rather than do it the way you do - ie work out minimum salary, calculate an amount we can afford to save every month and then maybe put more in at end of month if we have some left. That is a more disciplined way of saving if you are trying to build it up.

DandelionPatrol

theoretica wrote: »

Do your relatives know they have lent you money which has, in effect, been put into savings? If not I think you should offer to pay them back, and tell them you would otherwise put the money into savings.

I agree. Always pay friends and relatives back as soon as possible. They are probably your last line of credit if you are in real bother. So it is a good investment to keep them on side.

chelseablue

Thank you all.


I am going to pay back the relatives this week and Next in full, then I should have enough to pay half off of Barclaycard, then pay the rest next month

enjoyyourshoes

Then start saving !
Regular savings are great either:-
HSBC advance , First Direct 6% gross
Lloyds 4% gross


or even a Stock and shares ISA ?


If you have kids
Halifax 6% Regular saver


If both tax payers it'll be net interest if one of you pays no tax put RS savings in their name.

andyfromotley

This is really straightforward.

1. keep £1k in instant access savings for an emergency.
2. Put every spare penny towards paying of your debt. (use the snowball calculator to work out in which order)
3. Save when you are debt free.

This is a simple tried and trusted formula. It works and has got many many people out of debt. There are all sorts of reasons people will give you as to why you shouldn't do this, leveraging savings blah, blah blah. If your aim is to be debt free, ignore them and follow that advice.

chelseablue

Just been online and paid off the Next account in full, so that's one gone

chelseablue

Today I have paid my Barclaycard off in full.

It did make me wince transferring all that money but its nice to go on the Barclaycard app and see the balance as £0

sunshine81

Aww I bet that's a great feeling! Well done :-)