How much should I keep back when clearing debt

seagull12

Hi all,


So my scenario is that, after getting married, having a child, I find myself in a bit of debt (manageable with monthly repayments) and able to put away maybe £300-£400 per month after all expenses and spending money.


I want to clear the debt. Despite it not growing (two historic credit cards on 0% which I don't use) it still stresses me. They total £7.5k and I send £85 a month to them.


However, my 'savings', are very small at the moment.


So, assuming the logical idea would be to save a little bit and then start chipping away at the debt thereafter, what is a sensible amount to save to? Enough to cover 1->2 months expenses?


I realise the answer is probably "It's up to you" but would anyone have a good suggestion?

Aaleigha

Yes it is up to you but
I have 1000 squirrelled away for emergencies I also have a car fund with 500 in if I gave to use either I pay back into it as quick as I can

I think with you it will very much depend on when the 0% runs out
How much extra a month would it be to ensure that happens pay into the card that amount and save the rest is what I personally would try to do

DD265

I think the general recommendation is an emergency fund of £1000 if you're a homeowner, £500 if you're not. Maybe a bit extra depending on individual circumstances, e.g. if you've got an unreliable car for example.

You should post a statement of affairs (format for MSE): http://www.stoozing.com/calculator/soa.php

Posters will use this to help you prioritise, suggest any additional savings you can make. Also provide details of the credit cards; limits, balances, the dates when the 0% rates end and the interest rates thereafter. Where you may run into problems is if the 0% rates end and you can't get any new offers to keep them at 0%.

Personally I got £500 in my emergency fund (we're renting) then sent the rest to my debts. We then decided to buy a house, so I dropped my debt repayments down (still to well above minimums) and focused on the deposit/£1k emergency fund/savings for the house. Once we're settled in the focus will be back on the credit cards.

datlex

Agree with above £1000 keep in case of emergencies.