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  • FIRST POST
    • bruceiow
    • By bruceiow 12th Mar 18, 1:46 PM
    • 30Posts
    • 2Thanks
    bruceiow
    How to deploy windfall prior to adding to mortgage
    • #1
    • 12th Mar 18, 1:46 PM
    How to deploy windfall prior to adding to mortgage 12th Mar 18 at 1:46 PM
    Hi All,

    I am hoping to move house in the next quarter. We currently are paying a mortgage on our existing property and have about 80k equity on our existing place.

    I have received an unexpected windfall of 2k and want to know how best to use it..

    So my options as far as I can see:

    1) I have a credit card on 0% for another year. I have 4k on it from some uni fees and a large car repair a couple of years back. I haven't spent on it for 6 months and don't intend to. I'm paying over the minimum and will tart it at the end of the 0% period.

    2) I have two small car loans, both just under 3k each, both due to finish in 2 years. They are with Natwest and have been there for 3 years. I seem to recall from the bank that I could add partial settlement to reduce the timespan if I wanted to.

    3) My wife is paying monthly (direct to the provider) for some course fees, there is less than 2k remaining now.

    4) I have a couple of grand savings that is my safety net.

    Out of those which would be my best advantage to pay my windfall against? I can pay off a bit of a debt (or small bits from many debts), finish a monthly commitment or add to my savings.

    Bearing in mind I am going with my begging bowl to the bank in a minute for a bit more mortgage

    Many thanks!
Page 1
    • fewcloudy
    • By fewcloudy 12th Mar 18, 2:47 PM
    • 220 Posts
    • 115 Thanks
    fewcloudy
    • #2
    • 12th Mar 18, 2:47 PM
    • #2
    • 12th Mar 18, 2:47 PM
    Hi All,

    I am hoping to move house in the next quarter. We currently are paying a mortgage on our existing property and have about 80k equity on our existing place.

    I have received an unexpected windfall of 2k and want to know how best to use it..

    So my options as far as I can see:

    1) I have a credit card on 0% for another year. I have 4k on it from some uni fees and a large car repair a couple of years back. I haven't spent on it for 6 months and don't intend to. I'm paying over the minimum and will tart it at the end of the 0% period.

    2) I have two small car loans, both just under 3k each, both due to finish in 2 years. They are with Natwest and have been there for 3 years. I seem to recall from the bank that I could add partial settlement to reduce the timespan if I wanted to.

    3) My wife is paying monthly (direct to the provider) for some course fees, there is less than 2k remaining now.

    4) I have a couple of grand savings that is my safety net.

    Out of those which would be my best advantage to pay my windfall against? I can pay off a bit of a debt (or small bits from many debts), finish a monthly commitment or add to my savings.

    Bearing in mind I am going with my begging bowl to the bank in a minute for a bit more mortgage

    Many thanks!
    Originally posted by bruceiow
    Just checking; the windfall is 2k, you didn't mean to write 20k? (not that there's anything wrong with an unexpected 2000 of course...)
    Feb 2008, 20year lifetime tracker with Sprogget and Sylvester, 0.14% + base for 2 years, then 0.99% + base...
    • AnotherJoe
    • By AnotherJoe 12th Mar 18, 2:52 PM
    • 9,403 Posts
    • 10,390 Thanks
    AnotherJoe
    • #3
    • 12th Mar 18, 2:52 PM
    • #3
    • 12th Mar 18, 2:52 PM
    Keep the money you will need it for moving expenses.
    • bruceiow
    • By bruceiow 12th Mar 18, 2:54 PM
    • 30 Posts
    • 2 Thanks
    bruceiow
    • #4
    • 12th Mar 18, 2:54 PM
    • #4
    • 12th Mar 18, 2:54 PM
    I wish it was 20k! No just the 2k totally unexpected- I know the effect is likely to be immaterial but I want to use it in the best way.
    • MEM62
    • By MEM62 12th Mar 18, 3:27 PM
    • 1,572 Posts
    • 1,193 Thanks
    MEM62
    • #5
    • 12th Mar 18, 3:27 PM
    • #5
    • 12th Mar 18, 3:27 PM
    I have received an unexpected windfall of 2k and want to know how best to use it.
    Originally posted by bruceiow
    Holiday?
    • Thrugelmir
    • By Thrugelmir 12th Mar 18, 3:37 PM
    • 58,466 Posts
    • 51,844 Thanks
    Thrugelmir
    • #6
    • 12th Mar 18, 3:37 PM
    • #6
    • 12th Mar 18, 3:37 PM
    Use the windfall plus some of your savings to clear the most expensive loan completely. The trouble with rolling debt over is that one never ends up clearing it. There'll be yet another large unexpected bill to pay. Breaking the cycle is well worth the effort. As you'll have a lot more money in your pocket.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • bruceiow
    • By bruceiow 12th Mar 18, 3:47 PM
    • 30 Posts
    • 2 Thanks
    bruceiow
    • #7
    • 12th Mar 18, 3:47 PM
    • #7
    • 12th Mar 18, 3:47 PM
    Holiday?
    Originally posted by MEM62
    Haha, I've got two in the bag for the year so I'm good for those!
    • AnotherJoe
    • By AnotherJoe 12th Mar 18, 4:16 PM
    • 9,403 Posts
    • 10,390 Thanks
    AnotherJoe
    • #8
    • 12th Mar 18, 4:16 PM
    • #8
    • 12th Mar 18, 4:16 PM
    Use the windfall plus some of your savings to clear the most expensive loan completely. The trouble with rolling debt over is that one never ends up clearing it. There'll be yet another large unexpected bill to pay. Breaking the cycle is well worth the effort. As you'll have a lot more money in your pocket.
    Originally posted by Thrugelmir
    The OP only has 2k in savings and is moving ina few months.
    • fewcloudy
    • By fewcloudy 12th Mar 18, 4:17 PM
    • 220 Posts
    • 115 Thanks
    fewcloudy
    • #9
    • 12th Mar 18, 4:17 PM
    • #9
    • 12th Mar 18, 4:17 PM
    Hi All,

    I am hoping to move house in the next quarter. We currently are paying a mortgage on our existing property and have about 80k equity on our existing place.

    I have received an unexpected windfall of 2k and want to know how best to use it..

    So my options as far as I can see:

    1) I have a credit card on 0% for another year. I have 4k on it from some uni fees and a large car repair a couple of years back. I haven't spent on it for 6 months and don't intend to. I'm paying over the minimum and will tart it at the end of the 0% period.

    2) I have two small car loans, both just under 3k each, both due to finish in 2 years. They are with Natwest and have been there for 3 years. I seem to recall from the bank that I could add partial settlement to reduce the timespan if I wanted to.

    3) My wife is paying monthly (direct to the provider) for some course fees, there is less than 2k remaining now.

    4) I have a couple of grand savings that is my safety net.

    Out of those which would be my best advantage to pay my windfall against? I can pay off a bit of a debt (or small bits from many debts), finish a monthly commitment or add to my savings.

    Bearing in mind I am going with my begging bowl to the bank in a minute for a bit more mortgage

    Many thanks!
    Originally posted by bruceiow
    Is there a way you can make use of this website...
    http://www.whatsthecost.com/snowball.aspx
    just to see what the best use of your windfall might be? Helpful for debt repayment in general I guess?

    But yes the rule is to pay off most expensive debt first.
    Feb 2008, 20year lifetime tracker with Sprogget and Sylvester, 0.14% + base for 2 years, then 0.99% + base...
    • Thrugelmir
    • By Thrugelmir 12th Mar 18, 4:30 PM
    • 58,466 Posts
    • 51,844 Thanks
    Thrugelmir
    The OP only has 2k in savings and is moving ina few months.
    Originally posted by AnotherJoe
    Clearing a loan would enable the OP to rebuild their savings.

    There's an old Chinese saying. "A man who wishes to move a mountain starts by moving the small stones first".
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • getmore4less
    • By getmore4less 13th Mar 18, 10:15 AM
    • 32,035 Posts
    • 19,222 Thanks
    getmore4less
    I think you need to put a proper plan in place and do a detailed budget for the year with the move in and preferably a 5 year plan/forcast.

    Hi All,

    I am hoping to move house in the next quarter. We currently are paying a mortgage on our existing property and have about 80k equity on our existing place.

    I have received an unexpected windfall of 2k and want to know how best to use it..

    So my options as far as I can see:

    1) I have a credit card on 0% for another year. I have 4k on it from some uni fees and a large car repair a couple of years back. I haven't spent on it for 6 months and don't intend to. I'm paying over the minimum and will tart it at the end of the 0% period.

    2) I have two small car loans, both just under 3k each, both due to finish in 2 years. They are with Natwest and have been there for 3 years. I seem to recall from the bank that I could add partial settlement to reduce the timespan if I wanted to.

    3) My wife is paying monthly (direct to the provider) for some course fees, there is less than 2k remaining now.

    4) I have a couple of grand savings that is my safety net.

    Out of those which would be my best advantage to pay my windfall against? I can pay off a bit of a debt (or small bits from many debts), finish a monthly commitment or add to my savings.

    Bearing in mind I am going with my begging bowl to the bank in a minute for a bit more mortgage

    Many thanks!
    Originally posted by bruceiow
    Summary.
    You are 14k in debt and planing to move with just 4k in cash.

    What's the cashflow and debt going to look like by the end of the year(April-MArch) after the move is complete

    The best place to get help on planning is
    http://forums.moneysavingexpert.com/forumdisplay.php?f=76
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