Its time to sort out this mess!

mick1234_2

@workingmum thanks I have started to do more of this and monitoring my spending, my meal planning is getting better.

Also on another note some advise would be good it is possible I may receive some money in a month or two im not sure yet how much but it should be at least £8000 what would you do in my situation, pay off the Barclaycard ?

efes_shareholder

mick1234 wrote: »

@workingmum thanks I have started to do more of this and monitoring my spending, my meal planning is getting better.

Also on another note some advise would be good it is possible I may receive some money in a month or two im not sure yet how much but it should be at least £8000 what would you do in my situation, pay off the Barclaycard ?

I would stash half somewhere where it can be accessed but not instantly - I put mine in Prem bonds

I would then distribute the other half across all of the debts

mick1234_2

efes_shareholder wrote: »

I would stash half somewhere where it can be accessed but not instantly - I put mine in Prem bonds

I would then distribute the other half across all of the debts

Can you still make money off Prem Bonds ?

efes_shareholder

Thats down to luck but the interest rates are so poor I decided to let mine play the lotto for me , with the bonus of being able to take it out at any point

Obviously the bigger the pool of bonds , the higher the probability but even one £25 win is probably more then you would get in interest

mick1234_2

Things are getting a lot better, I am budgeting every month, I have an emergency fund which I do not touch and I have paid over £1000 of my MBNA Card, I am just waiting for the credit report to update and then I should be able to get some better deals and transfer some of the debts.

One thing I have been contemplating is selling my house, I have been wanting to move for a while but I just have never done anything about it, so i'm just after some of your thoughts. If I sold I would walk away with around £22000 this would clear all my debts, I would then rent and still have money to start saving for a deposit for another house, I would be basically starting again but this looks like the best option, debt free, no house repairs to think about, I would still have an emergency fund I would need to rent for a few years in order to save... thoughts


thanks for all the reply's it helps so much!

mick1234_2

The other option is to sit tight for a few years probably 3 in order to pay everything off.

Working_Mum

The agreed wisdom on here is not to sell your home to pay off your debts - there are so many hidden jinxes with that strategy including moving to unsecure home situation, finding deposits, poor landlords etc etc

You seem to be heading in the right direction and have changed your behaviours so you are making real progress into your debts and you should be proud of that.

3 years is nothing in the scheme of things and if you can be debt free in 3 years, with an emergency fund that puts you in a strong position to make some choices from a position of freedom!!

mick1234_2

thank you, its hard when you look at everything to see what the right thing to do is and one of the benefits is that my mortgage it is very low compared to others I know.

The area isn't great but I've been there awhile so a few more years will not kill me.

enthusiasticsaver

Don't sell. Renting will be more expensive so you won't be able to save as well even if the debt is gone. It is also much more unsettling as you are sometimes having to move at the whim of a landlord. If you are budgeting and saving now then you are going in the right direction. This year you have spent out on a relatively expensive car you could not really afford so that has scuppered your chances of getting debt free in a relatively short period of time but hopefully things will start to improve next year when you have had some time without high childcare costs and the debt has gone down somewhat.

mick1234_2

thank you, yes the childcare has defiantly helped.