Looking for advice - house sale!

123mortgagefree

Hello!

So on Friday my house that I owned with my ex will complete sale, and I will receive around £10k back.

Unfortunately in the last year I have ran up some debts and not sure what the best way to clear them is. Either I use all the money to pay it off, or keep hold of the lump sum and use the extra money I will have from not paying bills to pay it?

Current figures:

Store card : £900
CC 1: £6000
CC 2: £700

I'm worried if I pay them all off then each month I won't be strict and save, or if I keep hold of the lump sum then I am going to be paying out much more in interest each month. Any advice would be great!

Andyjflet

Pay them off, then keep the rest as your emergency fund in an EF account with quick access, then save on Day 1, the day you get paid set up an automatic savings amount into a linked account thats harder to access.

123mortgagefree

Thanks Andyjflet, I think it will be best to use it to pay them off, I think it's the worry of not building it up again.

I know where my downfalls are with spending so I am going to rein them in and try build it back up as soon as possible but at least then I wont have CC payments each month.

Andyjflet

Start a budget and stick to it then you wont go over, make sure every £1 you earn goes to something. Savings / food etc.