Inheritance what would you do

[harlacem0507]

My mum recently sold my nans flat and has very generously given me 7k (she didn't receive a large amount herself due to care home fees) but what would u do with 7k if u had it? I am torn between getting my garden done (5k at least) which leaves a couple left over which I would probably get my children's carpets fitted (moved in 2 years ago and couldn't afford to get the floors done yet) or would u pay off some debt? I have a credit card of £1700 due to needing a new clutch on my car, I have one bank loan of £3300 which paid for my new ensuite, and a couple of smaller credit store cards around £800. It feels such a shame to spend the money paying off debts although this is the most sensible option. I also need some fitted wardrobes as my bedroom is quite small so fitted wardrobes are the way to go in regards to saving space etc. Honest answers please ☺️

I would pay the debts off and get the carpets. Then with the money you can save by not making monthly debt repayments, you can save for wardrobes or the garden makeover.

It's a good feeling paying off debt... 5k on debt... 2k on anything else..

I think paying your debts would be most useful as it is unexpected money. Would you have enough left for a holiday.?

Paying off the debt would be lovely and I say that as a spender!

Pay off the debts and stop living beyond your means with credit cards and loans.

You only live once and as you have kids, why not get a great garden for everyone to enjoy, plant a tree for your nan, and use the rest for debts. Leave the carpets as kids may mess them up anyway. Assuming you can pay off the rest of the debts and they are manageable.

I would definitely pay off the debts then go for the carpets. With the garden, I'd pay for a decent gardener on an hourly rate and plan and work on it together - that'll save you ££££.

Don’t pay the debts off if you have over a year on them. If the debt comes to 3k for instance, put 3k in a savings account with the highest interest you can find and at the end of the term pay it off and then use the interest paid to you to go towards something. If the debt is costing you interest now or ends within 12 months then just pay it off.

I would spend half and save half, a garden I could DIY.

Debt. Always pay off debt unless there is a penalty for paying off early.

Pay off debt, put the rest (if any) in savings, treat yourself to something you normally wouldn't. Honestly you'll feel so much better for it.

Pay off the debt and consider the money to have paid for the en suite and other nice things you put on the cards and loan.

Mad to start buying and paying for more things before you paid off the last things you couldn’t afford.

Then save the money you are making in repayment towards the carpets or garden or wardrobes.

Pay off your debts first, because the interest you are paying on them is lost money to you.
If you have anything leftover after clearing your debts, buy yourself a small piece of jewellery, for a couple of hundred pounds, for something to remember your Grandma by.

Any remaining money, put into a savings account, to be used for emergencies. This will help you steer clear of debts in the future, as at present you seem to use your cards for any emergency purchases.
Once your debts are cleared, start saving regularly, even a small amount will help you. Having savings that you can use when unexpected things happen, will help establish your future financial security.

Pay off the debts. It's a no-brainer.

Get rid of your credit card debt and stop using them. Put £2000 into savings ready for the next car or other unexpected expense so you don't need credit, then think about what your priority is for remaining £2500. Carpets or saving for garden or something else.

Debt - just think of it as Nan paying for your ensuite.
Then save up for future chunky expenses instead of getting them on credit, they cost less that way.

Yes i would like to pay off that credit card, it's my first and only one I have and had no choice when my clutch went as I couldn't afford a new car. I'd get rid of that for sure. The ensuite was originally 6k so we have paid half off already and have another 3 years to go as I only pay £140 a month so I'm not bothered about paying that off. The kids carpets are a must before I spend anything on myself as their floors are terrible. I like the idea of half and half, geg rid of some debt but probably not all and enjoy the other half or pop some in savings

pay off the credit card - then you have it available for emergencies
buy the carpets
forget the garden - that is far too much - when you have so much debt, do the garden yourself - so change your ideas on what you want to do with it and do what you can actually do with it.

Pay off all your debts and buy the carpets. Then you can start to build up a savings fund to be able to buy things you want in future without going into debt for them.

Pay off the debt... all of it... then start saving.

What percentage of your annual income is your £5.800 of debt? How much are your monthly repayments on that debt? having 3 months salary in savings is a comfortable place to be.... Once you have that - you can continue to pay the amount you have been paying in debt repayments, into a savings account.

EG: You borrowed £3,300 for the ensuite, based on a quick google search, you will have paid an additional £600 in interest if borrowed over 3 years, repaying at £110 per month.

If you put that £110 into your savings, you would have saved £3,300 in 2.5 years.

Decide what your priorities in your garden are - you can do them as you save - not all at once..

Let this be your Nana's legacy - that you always have money in the bank - never let your savings balance go below £1,000 - unless dire emergency like a replacement boiler. Reducing any loan by £1,000 will save you £250 in interest over 3 years and take you 12 months to put back in savings at £110 per month.

I save every month - it goes by standing order, into an account I do not access. Then when the car needs work, or I have to fix things in the house - the money is there.

get rid off debts

Pay off the debt - unless zero interest, start to build an emergency fund for the next clutch-style emergency. Stop borrowing to do house improvements, save for them in advance. Not as much fun I know but you sleep better (if you are me).

Clear your debt. Put the money you were paying on debt payments straight into savings. When you have an emergency fund built up then you can save for the carpets, garden etc,

I did think that the ensuite was a good deal at £3,300 - £6,000 makes more sense.

If you pay off all of your debt, you will save £600 on interest on the bank loan alone.

You can get interest free credit at Carpet Right for the carpet, swapping interest borrowing for interest free borrowing.

Pay off debt then you can save for the other stuff - you have already spent the money

Get the garden done and pay some of your debt, enjoy your inheritance!
Let your children buy their own carpets.