£50 winnings ..... what to do with it???

loobyloo1980

Hubby has won £50 on fantasy football competition at work, what should we do with it for the best?

pay it off my credit card?
pay it towards 3 month catalogue arrears?
pay it off bank overdraft?
pay for weekly shop with it tonight?

It will get used for something sensible whatever, but not sure which. Our debt busting plan was to clear my credit card first as it only has £200 balance so is easy to clear and snowball from, so I am inclined to do that, but it is time to do the weekly shop which is about £50.

Squiffy

The credit card is the sensible option - saved interest, reducing monthly minimum payment and all that...

But given your other thread, why not use it to establish your emergency budget fund?

loobyloo1980

Squiffy wrote:

The credit card is the sensible option - saved interest, reducing monthly minimum payment and all that...

But given your other thread, why not use it to establish your emergency budget fund?

good idea, just not sure I have the willpower yet to leave it alone as an emergency fund!!!!

HUbby wants it to go off one of the debts and I was intending on paying my usual monthly payment of £25 (which is higher than the minimum asked) plus the £50 extra off my card just to make a nice big dint.

Things are so tight right now I would feel bad holding on to £50 when it could do some use in the here and now. Think I can budget an emergency fund into next months wages though, as I'm considering reducing my son's nursery to 2 sessions from 3 over the summer to save a bit. I have him in nursery 3 mornings while I study, but I claim back majority of costs from OU in grants.

loobyloo1980

I could save it for son's birthday which is in 5 weeks, that would be good use???

lipidicman

Card or catalogue - whichever has the highest interest rate!

Murtle

use it on the credit card if you are snowballing effectively and that's the first one that needs paying off!!

...do you have money to pay for the food shop or how were planning on paying for it previously??

...and congratulations - a nice little bonus!!!

Murtle

loobyloo1980 wrote:

I could save it for son's birthday which is in 5 weeks, that would be good use???

5 weeks???!!!

You could use the money you save from next months nursery costs for his birthday???

Good luck decision making!!

loobyloo1980

well the catalogue is 0% interest but is in 3 months arrears amounting to £560 .... ooops!!!

the credit card is a whopping 29.9% which is why we are desperate to pay it off..... and fast :-)

I think the card is the best option, and I think the suggestion about saving the nursery fees is great too - thanks for that.

Murtle

at that rate you are right the card is surely the right thing to do.

But...have you been in contact with the catalogue company about repaying their money??

ooo that just scared my - I just read your debt level as £150,000 - just my eyes, you're no where near that

loobyloo1980

Murtle wrote:

at that rate you are right the card is surely the right thing to do.

But...have you been in contact with the catalogue company about repaying their money??

ooo that just scared my - I just read your debt level as £150,000 - just my eyes, you're no where near that

yes, wrote to them this morning and offered to pay £200 per month which is what we have budgeted for. Hope they are ok about it.

Xbigman

I'd keep £10 back as an emergency fund. Get 10 pound coins, put them in a tub full of water and put it in the freezer. Pay the rest off the highest APR debt.
Regards



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