What to do with my inheritance?

moneyistooshorttomention

Another one that regards it basically as a no-brainer.

I'd ignore the student loan and just leave that waiting to "pay itself off" (I just don't regard them as debt - as there used to be student grants). It's not "your" debt (ie taken on voluntarily by yourself) and wouldnt be payable anyway underneath a certain income level.

I'd pay off the credit card first and then use every bit of money left on the table after that towards buying a house (just making sure to keep a small amount to one side in case of unexpected work needing doing immediately on the house - as there always seems to be something). Say, maybe, keeping £10,000 to one side in case of unexpected work on it and then you know you're sorted if you find it needs rewiring/new boiler/major roof repair/etc you hadnt expected from the survey.

Add that renting these days is very insecure and there are 4 of you to take into account - and it makes even more of a no-brainer to buy.

Mardle

Personally I wouldn't have ruled out living in the house on the grounds that it needs work and the children would need to change schools. If you could keep your jobs and live there you'd be mortgage free so would have at least £480 a month disposable income. Money that you could use for the work on the house. You also have capital to do some of it before moving in.

Out,_Vile_Jelly

If you definitely don't want to live in the house, or be a LL, then sell it and bank the cash while you have a think about what you want. There's no tearing hurry to spend it.

cloo

In your position, I'd sell the property and buy somewhere suitable for you. You'll be paying less than rent and will have the security of owning. Just be aware it'll all take time to happen

skint_chick

If your credit card has gone to a debt collection agency that is going to cause an issue wth a mortgage, having missed payments on your credit file means you could end up paying a higher rate of interest. So best to go an independent mortgage broker for advice rather than just your bank. If you don't currently have any savings you'll probably want to keep at least 6 months living expenses in a savings account in case of job loss/long term illness.

Then depending on the house you buy you'll want to keep some money in an account for any redecoration you want to do, broken boilers, new white goods etc.

Now is a good time to take stock of everything financial, like life insurance, critical illness cover, future plans. If the house is within commuting distance of your job I would get some quotes for the work that needs doing. If the 17k will cover it and the car then you should seriously consider it. If it's too far then get it sold and then take time to think about what you want to do. Definitely pay off the credit card debt. The student loan debt, if you aren't realistically going to earn enough to have to repay it then I would leave it as it is

trailingspouse

This seems to me to be a perfect time to 'get your house in order' (literally and metaphorically).

Get you debts paid off - but also work out why you got into debt in the first place, so you can avoid it happening again.

See how much capital is left, and then decide what to do with it. Some suggestions are
- put some aside as a rainy day fund
- use as a deposit for a house that you really do want to live in
- change the car

Depending on how much is left after the sale of the house, you might be able to manage all of the above.

Not everyone gets this opportunity - make it work for you.

Red-Squirrel_2

Sell the house

Pay off all debts except student loan

Buy a house to live in.

phill99

tacpot12 wrote: »

Owning a property does bring some extra costs that you don't have as a tenant (life insurance, buildings insurance and maintenance), but providing any new mortgage is about £100 less per month than the rent you are paying, you'll be able to cover these costs easily.

Rubbish. Those costs are just built into the rent.