Skip to main content
Skip to main navigation
Skip to talk navigation

Active discussions

Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Saved Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Flip

1 2 3 4 5 6 7

AIBU?

If you were in £10,000 worth of credit card debt and someone left you £1000

171 replies

OnePramAndHisSprog · 14/11/2013 21:06

Would you use it all to pay off a bit of the debt?
There are so many bits and pieces that we need and we are unlikely to ever get a sum like this again... But it seems like such a joyless way to use the money. And only a drop in the ocean of what we owe.
On the other hand, we are never going to get out of debt unless we prioritise that above everything else. WWYD?

OP posts:

Report

livinginwonderland · 14/11/2013 21:20

Pay off the debt. I would be tempted to go out and spend it but I know paying off the debt would be the right thing.

DP just finished paying off some debts from his last relationship (his ex sold his stuff to pay for gambling and he had to buy it all back) and it was SUCH a relief for him to get them paid off. Honestly, you'll feel MUCH better knowing that at least 10% of this debt is paid.

If possible, transfer it all to one, low/no-interest card and get it paid off as soon as possible. Everyone has made mistakes but don't let this debt ruin everything else. Get it paid off and get it sorted.

DownstairsMixUp · 14/11/2013 21:21

To be fair though, I'm not in any debt aside from one credit card so I'm probably not the best person to ask! Hence why I said, "that's just me though!" Getting advice from others who are in a similar situation will probably give you the best advice!

DontmindifIdo · 14/11/2013 21:21

It's 10% of your debt, not a drop in the ocean. 9 more 'drops' and the debt is gone. Now, you might not see that sort of money again in a lump, but it's not a drop if it's such a large % of your debt.

Pay it off. Are you repaying any of the rest of your debt or just paying interest now?

HaroldTheGoat · 14/11/2013 21:22

10,000 is a lot on a credit card, are they fleecing you on interest?

I've been there. I put it on a loan which cost 275 per month over 5 years. It's been a bit shitty but in the last year now.

I would pay it all off. It's a fair lump off that. As someone mentioned up thread, it's not just the 1000 it's the interest your saving too.

I know it's rubbish when you have to use extra bits to pay debts but the more you prioritise them the sooner you can get out of the debt.

I actually get more satisfaction in paying off debt now that buying stuff, it's so stressful. I can't enjoy the things properly!

Meglet · 14/11/2013 21:22

I'd use it all to pay the credit card.

nextphase · 14/11/2013 21:23

Another one saying pay it all off the debt.
And then if you can carry on paying at the same rate you currently are paying it off, you will suddenly see the amount owed dropping faster.
Is it all in one place?
Good luck working your way through the debt. Try to envision a lift without it hanging over you - it will happen.

Minnieisthedevilmouse · 14/11/2013 21:23

Gosh, I've read this and heavens I want to agree with previous, I kinda do agree with previous....

....but no. I don't recommend it. Do it if it feels right to you but don't fgs do it because I a stranger advises it. That's a bit weird.

My parents lost a baby at 18mths before I was born. Transplants weren't possible in 70's. They've always had a 'fuck it' attitude. Ultimately your here once. Decide what's important to u both. Then do that but whichever it is it's 100% effort only. Spend or save. Do either. But do it because it's right for you.

YOLO

SkinnybitchWannabe · 14/11/2013 21:24

Me and my OH are in a heck of alot more debt than you are and if we get any extra cash it goes straight to our debt management company.
The thought of being debt free (very far off for us) outweighs any things we want now.

azzbiscuit · 14/11/2013 21:25

Getting advice from others who are in a similar situation will probably give you the best advice!

Sorry but no. You don't go to somebody in a large amount of debt for financial advice. This is why people who go bankrupt are generally banned from jobs in financial services.

Minnieisthedevilmouse · 14/11/2013 21:25

Of course following that above is also weird.

Listen to yourselves. Do that, whatever it is.

Minnieisthedevilmouse · 14/11/2013 21:26

X posts- meant mines weird not someone else's aaaargh

BadgersRetreat · 14/11/2013 21:27

Yes i'd pay the card off too - i find debt stressful so would be pleased to get rid of a bit.

NonnoMum · 14/11/2013 21:27

Is the credit card debt interest free?
If not, can some of it be so (there will be a charge). BUT if you managed to get all the credit card debt in one interest free place and then divided up the sum by the amount of months you have to pay it off (say 12 or 24) can you then realistically make the payments (i.e not just the minimum).

So, if by some fluke chance a credit card company let you put all the 10k on a 24 month interest free payment, that would be about £420 a month in repayments... Can you do that? However, you would probably be charged about 3% for the privilege of doing so - say £300. If you think that that £300 comes out of the £1000, then I would do that, keep £200 for my total Christmas budget, and put the remainder £500 in an easy access high interest (?) a/c so that I could access it if I couldn't make the repayments one month.

A bit convalued but that's what I would do...

OnePramAndHisSprog · 14/11/2013 21:28

Hey, it wasn't me who said about £200 on Christmas gifts, before you decide to stone me!

OP posts:

SquirtedPerfumeUpNoseInBoots · 14/11/2013 21:28

minnie Yolo? Really?
You'd advise a stranger to keep a debt hanging over their heads for the rest of their lives?
Paying a fortune in interest they could have avoided?

At least the advice to ignore strangers was sound.

toffeesponge · 14/11/2013 21:28

Pay off some debt. You have already had the fun of spending the £1000 haven't you?

OnePramAndHisSprog · 14/11/2013 21:29

This connection is really slow, apologies for being two steps behind everyone else.

OP posts:

LastOrdersAtTheBra · 14/11/2013 21:29

Depending on your interest and current repayments you've actually got more than £3000 right there, in your hand. Debt costs money, even with fairly reasonable rates most debts cost at least 3x what they're worth to repay - so your £10000 debt, will probably cost you over £30000 by the time you've repaid it.

Paying £1000 now will save you so much over the lifetime of the debt, if you can maintain the same repayment you have now on a £9000 debt, instead of £10000, you will be able to pay it off years faster and save a ludicrous amount of interest.

BobaFetaCheese · 14/11/2013 21:29

Who was it that left you the money? Would they have appreciated you being sensible with it and using it on debt?

How important are the bits and pieces you need?

I would say put it on the card without knowing the above info.

DownstairsMixUp · 14/11/2013 21:29

I only meant people that were actually DEALING with their debts, hence why moneysavingexpert forums are brilliant as there's loads of people all in debt and trying to get out helping one another, it was an amazing help to my DP (who is now debt free) obviously I wasn't saying get advice from someone who is in huge debt and not attempting to resolve it. :/

Mumoftwoyoungkids · 14/11/2013 21:30

Would you mind sharing how much you have on each card, what the interest is and how much you are paying off each month. It may mean we can help a bit more with advice tailored for you.

DownstairsMixUp · 14/11/2013 21:31

Which I btw forgot to say, not entirely sure I can mention forum names but that forum I metioned above is brilliant, lots of people trying to get out of debt and help one another and lots of successful stories if you need anywhere specifically aimed at that :)

Don’t want to miss threads like this?

Weekly

Sign up to our weekly round up and get all the best threads sent straight to your inbox!

Email address

Log in to update your newsletter preferences.

You've subscribed!

secretscwirrels · 14/11/2013 21:32

Are you talking about student loans? Because really they are different. £1000 isn't much really.... are you working?
Always pay your debt first.
Get rid of those credit cards now.

azzbiscuit · 14/11/2013 21:33

Ultimately what you could do is put £1000 on the card reducing the interest you're paying, then if you change your mind you can spend £1000 on the card and then be back where you started.hopefully you'll see once paying the £1000 off, that spending it again isn't a good idea.

OnePramAndHisSprog · 14/11/2013 21:37

Nextphase that was a really nice post. Thank you.

Harold I tried to get a five year loan to pay it off but they rejected me as the payments per month would be the same so I wouldn't be any better off. I bloody would - there would be no interest adding up each month! They wouldn't listen though.

I have about seven grand on an interest free balance transfer until July, so "only" three to pay interest on.

Thanks for all your replies. It's fairly obvious what i should do then!

OP posts:

Flip

1 2 3 4 5 6 7

Please create an account

To comment on this thread you need to create a Mumsnet account.