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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

savings when you have debts?

26 replies

ThatRareLimeFinch · 22/12/2025 15:50

just this really.

in my younger years i amassed a fair bit of debt, think unpaid bills, store cards etc, when in a bad relationship where every penny went on the other persons addiction.
as you can imagine this obliterated my credit score.

the last 3 years, i have managed to step away and have finally sorted my life out away from people with addictions, and all my bills etc are up to date.

i had 2500 i had saved from 2 benefit back dates.
i have recently paid 1000 of this to the local council and set up a further direct debit monthly to pay off the rest of the debt i owe them.

so have 1500 left in savings.

i still have around 3.5k in debt, most of it 4 plus years old.

i want to really get this down over the next year, but i dont know if i should use what i have left in my savings to pay a chunk of it off, or to keep my savings, and pay it bit by bit.

i could wipe a few of the debts off completely if i used my savings, but what happens if somethings crops up, like car needing repairs( its 14 year old and i cant afford a new one ), vet bills etc. as i have no access to credit/overdrafts

YABU - use the savings and clear the debts you can
YANBU - keep some savings just in case of emergencies and pay off debts bit by bit

OP posts:
ThatRareLimeFinch · 22/12/2025 21:02

thank you all! ive read each and every response.
i really appreciate your views on this. and the well dones for starting this process.
its been a long time coming, but im finally in a better place within myself and my life

today ive managed to pay off a small one (was 120 but could pay 40 on a offer deduction)completely, and have set up a multipayment with a debt recovery company that handles 4 other ones totalling 2.2k. its a low monthly payment, and i wish i could clear it at a higher rate/sooner but its an easily maintainable about for now, and it gets split between all 4. i have the option to pay chunks off at anytime online for this too which is nice.
and set up that direct debit with the LA.

ive decided to keep my savings as is, just in case.

ive looked where im wasting money every month, and im going to split my money into pots come next month so i have a budget for each category.

still got a way to go, and some more debts to sort out but i feel like im actually starting to make some progress on sorting my life out.

thank you all again!

OP posts:
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