Come into some money....what to do now?

getmore4less

Without seeing a SOA it is not easy to make specific comments.

if there is any interest being paid that is more than a net savings rate then you pay off the debt and keep a line of credit as the initial emergency fund(thats what you have now anyway).

Use the saved payments to pay off the rest of the debt THEN build up an emergency fund in real cash.

No need to borrow money on a CC to have an emergency fund you only need in an emergency, use the CC if one crops up.

Bellisima

Martin always says to pay off debts first, as the interest is usually so much higher than savings interest. Gifted money over £3000 per annum will be included in a persons assets if they pass away within 7 years of giving you the gift. If they die after 7 years then it is not included in the assets. Sorry to be morbid but went through this with my mum who developed dementia. My mum had to pay for her care (£34,000 per annum) as she had savings but we did not have to show the social worker any details of her money. If a person is self funding then the council don't really get involved. I'm sure if the council had had to pay it would have been a different matter!

I'd pay as much of that debt off as you can and leave a bit for a rainy day. You will find you could breath easy and I'm sure your anxiety will diminish . I wish you well with whatever you decide.

Penguin8410

thanks somuch everyone for taking the time to post.


We've sat down and had a really good think about everything. The plan will be to clear all of the debts and service charge, put 2k away for each of the girls and 2k away for us. We will then transfer the money back to each of the girls accounts on a monthly basis and set up a new savings account for us and standing order for savings each month.


Looking at it, we were trying to keep to an unrealistic budget to pay of the debts as quickly as possible, which wasn't leaving enough for us to spend on petrol let alone food! We have redone our accounts, joint and individual, and put all of the direct debits coming out of the joint account and then set up an amount to go into our individual accounts for petrol and something to spend on entertainment. I've spoken with my mum about using the money my grandma said was for the girls to make sure all of the debt is paid off and she agreed it was the best thing to do and my grandma was happy with that. i didn't want to feel i was taking money from them without asking, but we will make sure that is paid back over time.


Number75 valid point about him being my boyfriend and not my husband. we have been together 15 years this year and just haven't ever got married because we haven't had the money too. we're hoping now we can add that to our list to do!


for those asking no we don't have a DMP so we will be paying off the amounts shown on our credit cards online and luckily our 2 loans come to an end in june and july, so by August we will be debt free and on the path to saving and moving house.


thanks again and i promise (to myself and you guys) that getting into debt will NEVER happen again! the anxiety and depression that i have suffered with over the years has just not been worth it xx

Penguin8410

OneLife_OneShot wrote: »

As someone said I would definitely keep a combined salary for a month or two spare. That is my plan when I am DF in 8 weeks to have money in case something happened in the job market. Still a great position to be in, I hope you make the most of it

Congratulations on being debt free in 8 weeks! well done and enjoy!

sunshinegirl66

We were in £37k of debt in 2007 and it caused me so much anxiety and headache.I have finally paid it all off after nearly 10 years and it's an amazing feeling.I keep a spending diary which is essential and I never want to be in that position again as we are in our late sixties and early seventies.
Good luck to you .x

Penguin8410

congratulations sunshinegirl66 thats amazing!! thats absolutly my thing, i never ever want to be in this situation again so i will also be keeping a spending diary. i have a little note pad with a pocket for receipts so will be using that without fail!
good luck with your future and enjoy! xx