pay off all debts or try to save a bit too?

lieutenant_dan

As most of my debts defaulted a few years ago, the interest option isn't there as it's just the capital owed that is being repaid, so I'm not losing out in that sense by having to pay more on top through interest over a longer period.

But what sort of approach do you have, best to keep a fair bit aside for emergencies and to try to rebuild your finances, or concentrate soley on debt repayment?

beanielou

Can you not do sort of half & half?

getmore4less

lieutenant_dan wrote: »

As most of my debts defaulted a few years ago, the interest option isn't there as it's just the capital owed that is being repaid, so I'm not losing out in that sense by having to pay more on top through interest over a longer period.

But what sort of approach do you have, best to keep a fair bit aside for emergencies and to try to rebuild your finances, or concentrate soley on debt repayment?

The important thing is to have a plan that will not give you cash flow problems(requiring more debt) so saving up for all known expences, having some set aside for the unknowns that cannot be delayed and saved up for and reducing the debt are all important..

Put together a budget and work out your debt free day.

gax23

lieutenant_dan wrote: »

But what sort of approach do you have, best to keep a fair bit aside for emergencies and to try to rebuild your finances, or concentrate soley on debt repayment?

An oxymoron, surely? If you're in debt, your credit rating will suffer. You haven't told us how much the debt is, so I can't really advise any more than this I'm afraid.

SarahNeedle1872

If ur debts have gone into default, u won't be able to rebuild ur credit history until u have paid them all off (and possibly not until the defaults have cleared ur file). If u are only paying inimal interest, then I personally would save a bit of money for emergencies, but only a little bit. U need to work out ur monthly budget and see what u can afford to save, without leaving your self short. U could budget in for things like car tax etc, and save that each month, but there needs to be balance.... don't save money for 'just in case' at the expense of your debt repayment. If improving your credit score is whats important to you, then payingoff your debts needs to be your priority

HTH

Sarah

Bunnyinthelights

I agree with Sarah.

CLAPTON

If you are paying no interest on your debts then your best bet is to continue the current payments (don't rock the boat)
save as much as possible
keep sufficent for emergencies as you can't get credit and
when you have saved up a decent amount you may be able to do full and final settlements and hence clear the debts earlier.

simonts

I think its good to have an emergency buffer..say for example you get a puncture etc.

Other than that you dont save if you have debts.

lilac_lady

Try to save a bit for emergencies then concentrate on clearing your debts. You're on the right track.

bathgatebuyer

I try and keep £100 in a savings book account in the event that i may need some cash quickly for an emergency. I do try but it very rarely works like that!

simonts

bathgatebuyer wrote: »

I try and keep £100 in a savings book account in the event that i may need some cash quickly for an emergency. I do try but it very rarely works like that!

Book savings are good because they take away the walk to a cashpoint and spend mentality...my books savings are very secure because I cant even remember where I put the book :rotfl: