Inheritance due need advice

andybernygolly

Hi all, i am a new member and require some advice. I will be receiving around 11k inheritance money this week and using it to pay my 5k car loan off. The advice i need is i also have 6k on credit cards but these are 0% for 20 month, should i use the remaining inheritance money to clear these cards or save it and pay the cards over the 20 month with the car loan cash i will have freed up?

Im swaying towards being debt free but we want to move house in the next year or 2 and 5k would be a good starting point to build a deposit up.

Thanks Andy.

john1002

If you can be sure you can pay off the cards when due then save the 6k in the best paying account you can, earn some interest and have a back up fund should something happen in the coming months.

As the cards are 0% the above is what I would do.

John

Keep_pedalling

Earning some interest on the £6,000, while paying down the 0% debt would be the way to go.

ALIBOBSY

Keep_pedalling wrote: »

Earning some interest on the £6,000, while paying down the 0% debt would be the way to go.

Plus save any car loan payment money (now freed up) to increase the savings. Cover the min pays as I assume you are now.

Then look for further 0% deals down the line and you will have the cash as backup in the account in case you can't get any more deals or enough deals and need to pay off some or all of the debts.

Ali x

bris

Depends on will power. In the past I had none and if I had 5k spare with a 0% deal running I would opt to keep the 5k and let the deal run out before paying it off.


In the past my reality would have been that but I would chip away at the 5k until nothing was left leaving the CC 0% deal to run out and no way of paying it off.


Now however I would just take the opportunity to be debt free.


So hows your will power?

eskbanker

andybernygolly wrote: »

Im swaying towards being debt free but we want to move house in the next year or 2 and 5k would be a good starting point to build a deposit up.

You might wish to consider the potential effect of a £5/6K debt on a mortgage application....

andybernygolly

Not good hence the debt

andyfromotley

Become debt free!! As soon as you get the money! Then CLOSE those credit card accounts and put you mind toward saving as much as yyou can. you are in a really fortunate position, dont blow it by following a plan to get a few quid in interest which only results in you frittering away the cash you were supposed to be saving.

Dont. Blow. It. :-)

andybernygolly

Thanks for the advice everyone. i have decided i will be paying the car loan and majority of credit card debt off, i will be left wth around 1k of debt which i will be balance transferring to the virgin 30month 0% card with low fee.