Best way to use a £25000 windfall...?

colsten

Are these credit card debts? Could you consolidate the two into a single, new, 0% deal, like this one from Tesco http://www.tescobank.com/credit-cards/low-fee/index.html

I haven't done any numbers to confirm this would be sensible, just looked at simplifying things

ronaldadio

colsten wrote: »

Are these credit card debts? Could you consolidate the two into a single, new, 0% deal, like this one from Tesco http://www.tescobank.com/credit-cards/low-fee/index.html

I haven't done any numbers to confirm this would be sensible, just looked at simplifying things

I'm new to being cautious bud, so simple is good
No, they are not credit card debts - Gas & Electricity, long story.
I do have 2 credit card debts - 1 for about £2,000 and another for about £500. I'm now thinking the same with them. Could I transfer the balances to another card interest free for a period, then set up another account to pay off the balance?
Just thinking...

I should have read the link first lol

ronaldadio

colsten wrote: »

Are these credit card debts? Could you consolidate the two into a single, new, 0% deal, like this one from Tesco http://www.tescobank.com/credit-cards/low-fee/index.html

I haven't done any numbers to confirm this would be sensible, just looked at simplifying things

Thank you so much.
I got a £4,050 balance transfer limit for 21 months.
I've transferred the 2 balances over. So I'm now guessing I've no need to do anything until the 21 months are up. Then either pay it off or transfer again?
I've got to make sure I keep up to date with what I have accounts wise.

kangoora

ronaldadio wrote: »

Thank you so much.
I got a £4,050 balance transfer limit for 21 months.
I've transferred the 2 balances over. So I'm now guessing I've no need to do anything until the 21 months are up. Then either pay it off or transfer again?
I've got to make sure I keep up to date with what I have accounts wise.

You need to make sure you pay the minimum payment normallly, i would suggest a direct debit.

Then, i would divide the balance due at the end of the period by 21 and make 21 payments into a high interest current account or regular saver. Otherwise, you will just end up owing the balance anyway at the end of the interest free period.

Eco_Miser

kangoora wrote: »

Then, i would divide the balance due at the end of the period by 21 and make 21 payments into a high interest current account or regular saver. Otherwise, you will just end up owing the balance anyway at the end of the interest free period.

This, but when using Regular Savers make sure you can get at the money when you need it, and not three months later (which is when the second of two 12 month RSs would mature). Maybe start a RS in month 8 of the plan.

ronaldadio

As you guys were so kind and helpful with your responses, I have an update...
The accounts I'm about to put money in are...
Nationwide FlexDirect
Tesco Bank
TSB Classic Account
Any obsevations or things I need to look out for??

Thanks

Archi_Bald

Sorry to be nosy but where's the other £18,000 going?

ronaldadio

Archi_Bald wrote: »

Sorry to be nosy but where's the other £18,000 going?

I didn't make it clear.
There are 2 of us.
With Tesco for example, we can open 2 accounts each.

I'm also waiting for some final figures as we have done interest free/ fee free balance transfer on about £6,000. This was actually going to come off the amount we had, around £35,000 and with other stuff it would have taken us down to £25k. Done this thanks to advice from Colsten

So, a couple of things paid off, couple of things bought we needed, balance transfers done - just waiting to see what the final balance we have to play with.

Basically, I'll be investing the £25k and possibly a little bit more (not that much)
Then I'm looking for some way of putting around £6k into and account that will give interest BUT will be paying off the £6k over 21 months (if this all makes sense?)

Eco_Miser

ronaldadio wrote: »

Then I'm looking for some way of putting around £6k into and account that will give interest BUT will be paying off the £6k over 21 months (if this all makes sense?)

So that's a home for £6k, that will be reducing as you pay off the balance transfer?
How about a couple of Lloyds Club (4%), made up to £10k with some of the Tesco money. Pay down from Tesco (the lowest rate). You could re-designate two of the Tesco accounts as holding the BT money.

ronaldadio

Eco_Miser wrote: »

So that's a home for £6k, that will be reducing as you pay off the balance transfer?
How about a couple of Lloyds Club (4%), made up to £10k with some of the Tesco money. Pay down from Tesco (the lowest rate). You could re-designate two of the Tesco accounts as holding the BT money.

So put money longer term that I won't touch into the highest interest account, say Lloyds, then put the £6k into the lower interest account and set up some kind of DD with £6k divided by the 21 months in say the Tesco account? It is Tesco that I have the balance transfer set up with, but that won't make a difference?
I can see the thinking behind that, but why would I not put the £6k into an account, pay of monthly minimum and then when I hit the 20th Month, pay it off in full. I would then get interest on a larger amount of money for a longer time - or am I missing something?
I see what u mean about Lloyds 4% v Tesco 3%, but I might struggle to get an account with them due to past dealings

Thanks