Redundancy Payment

bestmumof3

I am being made redundant (Voluntary) at the end of April. I am due to start Teacher Training in August (only one year). Think I have a temp post to cover me from May til August.

The question is - do I use my redundancy payment (£14k) to pay off credit cards (approx £8k) or do I bank it and just use it as living expenses.

I have 3 young children (also an OH who is in FT employment). My thinking is to bank it and just withdraw each month how much I would have earned; therefore hopeully not increasing my debt; then once I have completed my course and in FT employment concentrate on repaying debt.

The other thing we were thinking for repaying debt was to add onto our mortgage. Our current mortgate is £24k- House Valued about £125K, also an endowment due to expire in 7 years for £10k.

tallyhoh

Pay off credit cards if they are not interest free. If they are 0% put the money in the bank until the free period has run out.

I also think (personally) that you should try & live on less when not working, not the same, or the money wont last long.

firesidemaid

i would echo the above poster, as you would still have some money left over.

also, sorry to ask, but how has the 8k come about? is that likely to increase again?

have you thought about posting an soa on here?