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EMI investment and debt
skemp1
Posts: 129 Forumite
Good evening,
I am after a bit of advice.
I have been given share options at work and I can invest now for the first time. I have to come up with £17k which is a 1/3rd of the value of 1.5% (emi rules) of the first share allocation. I spoke to the business Director though and he has said that they will loan me half of this amount for the first 2 years of share options so I have to come up with £8.5k.
For the first 1.5% I buy, the shares should yeald a dividend of £360 p/m after tax for the first year.
All sounds good so far. The problem is I am in debt a bit, nothing to serious but credit card £8k interest free, wife's car on pcp at £143 a month and that's about it.
And I obviously do not have the £8.5k to invest to buy the first allocation of shares. I had £4k in my savings account but paid £2500 off the car to free up some monthly cash to maybe get a loan for the amount needed to take up the share options.
I still have £1.5k left in my savings and I'm not sure what to do, should I lump £1.5k off the credit card to being it down to £6.5k or should I put it towards the shares and loan only £7k instead of £8.5k?
MBNA will lend me £7k interest free until September 2014 with just a fee of about £400 just not quite sure what the minimum payment would be on that. I would also try to pay it off before September 2014.
Any advice would be great thanks.
I am after a bit of advice.
I have been given share options at work and I can invest now for the first time. I have to come up with £17k which is a 1/3rd of the value of 1.5% (emi rules) of the first share allocation. I spoke to the business Director though and he has said that they will loan me half of this amount for the first 2 years of share options so I have to come up with £8.5k.
For the first 1.5% I buy, the shares should yeald a dividend of £360 p/m after tax for the first year.
All sounds good so far. The problem is I am in debt a bit, nothing to serious but credit card £8k interest free, wife's car on pcp at £143 a month and that's about it.
And I obviously do not have the £8.5k to invest to buy the first allocation of shares. I had £4k in my savings account but paid £2500 off the car to free up some monthly cash to maybe get a loan for the amount needed to take up the share options.
I still have £1.5k left in my savings and I'm not sure what to do, should I lump £1.5k off the credit card to being it down to £6.5k or should I put it towards the shares and loan only £7k instead of £8.5k?
MBNA will lend me £7k interest free until September 2014 with just a fee of about £400 just not quite sure what the minimum payment would be on that. I would also try to pay it off before September 2014.
Any advice would be great thanks.
0
Comments
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Can you not sell some of the shares to raise the purchase price? On your figures it looks as if you would only need to sell 1/3rd of them and could keep the other 2/3rds.0
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