Not sure where to start. Large debt & just sold house but likely being made redundant tomorrow

Grumpelstiltskin

Yes fill your ISA ASAP and then put the balance in another  savings account.

As has been pointed out do not rush into paying unsecured debts off, they are at the bottom of the list, you need to realize this.

Brie

I agree with what the others have recommended.  

And just for clarity....the ISA and savings account can be the same bank, even one with a current account so you can have your and priority DDs going out and any income coming in.  Just make sure that bank or building society is unrelated to any of your other debts.  So get started with Santander if your debts are with Barclays, Lloyds, Natwest. 

Frankly I'd do that asap so that you are applying with a clean credit history (albeit showing a bit of debt, but which is being paid) and knowing that you can truthfully state your current salary.  That things may change in a couple of months is  a possibility at this point not a certainty.  

horsey666

Brie said:

I agree with what the others have recommended.  

And just for clarity....the ISA and savings account can be the same bank, even one with a current account so you can have your and priority DDs going out and any income coming in.  Just make sure that bank or building society is unrelated to any of your other debts.  So get started with Santander if your debts are with Barclays, Lloyds, Natwest. 

Frankly I'd do that asap so that you are applying with a clean credit history (albeit showing a bit of debt, but which is being paid) and knowing that you can truthfully state your current salary.  That things may change in a couple of months is  a possibility at this point not a certainty.  

I just applied for an easy access ISA with Bank Of Ireland, but as I'm now in temporary address (with relatives), they couldn't process the application.  I guess my new address doesn't match whatever they checked it against.  It said my only option to set it up would be to send them a cheque or transfer from another ISA account.   Weird, as I've updated my address with pretty much everyone I could think of.  Anyway - not your problem!  (just explaining why I can't do the ISA right now)

GrumpyDil

I haven't checked cash ISA rates but have you looked at Trading 212 who are an online only provider? 

Highlanddream

Did you find out about possible redundancy today?

horsey666

Highlanddream said:

Did you find out about possible redundancy today?

Yes, I was told my role isn't impacted and no more lay offs are planned.  Good news in that my job is secured for now.  I really have no idea what to do financially though....I could use all of my money to clear as much debt as possible (it would leave me with around £13k to clear) and look to continue settling the rest over the next year - which would leave me vulnerable to any future job loss.....or I could clear say, half of it and keep say £10k in an ISA.

I think I will try and speak to step change or CAB

Grumpelstiltskin

If you contact Stepchange they will try and talk you into a DMP straight away, not the thing to do.

horsey666

Grumpelstiltskin said:

If you contact Stepchange they will try and talk you into a DMP straight away, not the thing to do.

That is precisely what they are trying to do as I'm typing this! (I'm on live chat to them)
All I want to know is "do I use ALL of my money (£33k) to reduce my outstanding debt to £12/13k - and leave myself with nothing other than my monthly wages, OR should I pay say £20k right now, keep £13k in case my job situation changes?"

I kind of think the second option would make more sense but I struggle with the decision

Grumpelstiltskin

Don't rush into paying anything off at the moment, there is no rush.

horsey666

Grumpelstiltskin said:

Don't rush into paying anything off at the moment, there is no rush.

The thing is, I'm currently living with family until I can find a place to rent.  I can't apply for rental accomodation as my credit score is "poor" - it's only poor due to the level of dept (I haven't missed any payments).  If I clear most of the debt my credit score will improve to the point that I can apply for a house to rent.