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Original poster

Help me decide what to spend this money on?

25 replies

cleoteacher · 13/07/2015 16:04

Dh is getting £3,000 this week and we can't decide what to spend it on. Here are the options.

1- keep it in savings account as it may possibly need to be paid back after 6 months but very unlikely.

2- a new boiler and update radiators. Our boiler is on it's last legs and has a bowl under it as it's leaking. We had a very cold winter last year as it was inefficient.

3- pay off credit card debts and fil early. We are due to pay this off in oct anyway and it's over £700 a month so once this is paid off we can afford new one anyway.

4- towards a new car (would be second hand) dh car is at the 10 yr mark and is costing us a fortune in repairs. He thinks we should sell it now while we can get a few thousand for it. Plus now we have two dcs we are finding my car too small.

Once we pay off the debt in oct we will be able to start saving so could do the boiler and car after that. But Obvisously using £3000 to pay off debts early would mean starting to save earlier.

Alternatively could get boiler on 12 month interest free deal dh has found.

Wwyd?

OP posts:
Quasicrystals1456 · 13/07/2015 16:49

Debts. Every time without a doubt. Leave some as an emergency fund, pay down debts then spend on essential stuff, save, invest....

FourAndDone · 13/07/2015 16:56

Boiler 12 months interest free.
Buy new car ( save £500 for UK hol?)
Start saving in October when debts have been paid Smile

Not sensible but is how I would do it.

tribpot · 13/07/2015 17:07

For me I think if there's the slightest risk that it might need to be paid back (particularly if there would then be a fixed deadline to meet) I would hold on to it.

If not, I would pay off debts first and get the boiler on interest free.

I would ditch the car and see if you can manage with one, using a hire car or Car Club scheme when you need the extra space.

specialsubject · 13/07/2015 17:25

  1. fix the boiler - now is the time of year to do it. Also sounds like it may be dangerous!

  2. pay off the debts with anything left.

  3. go buy a £500 ebay throwaway, you can get decent larger cars for this. Do some research on the honestjohn site and similar.

£700 a month debt repayment? On second thoughts, I think you'll only have enough for option 1.

specialsubject · 13/07/2015 17:26

ps I know it seems odd priorities, but you will struggle to get a boiler replaced from October. Summer is the time to do it.

Costacoffeeplease · 13/07/2015 17:50

I would also keep it until you know it definitely won't have to be paid back

Original poster
cleoteacher · 13/07/2015 19:15

Special subject- think you're right about the boiler. That's dh argument too and once paid off debt in oct it would free up £700 a month but still take us few months to save so would be jan by then. Dh reckons it will be cheaper by then too.

Def not having another uk hol, already been to bluestones on a cheap deal.

I know boiler makes sense but I hate being in debt. I ve had sleepless nights about it. Feel if we got the boiler on the interest free deal we would just be straight back into debt. Hate having monthly payments coming out, would much rather save for something.

OP posts:
Original poster
cleoteacher · 13/07/2015 19:16

As in boiler would be cheaper now as summer than in winter.

OP posts:
tribpot · 13/07/2015 19:29

Perhaps it would be wise, given some of your debt is to your FIL, to let him know you have this windfall, so he doesn't wonder why you're blowing a wodge of cash on a new boiler (hardly a luxury item but still) when you owe him big bucks.

I think he would almost certainly rather you got the boiler done as long as repayments were kept up - you've only got three payments left to make.

I'm still concerned as to why it might need to be paid back - can you elaborate on that or is it too personal?

specialsubject · 13/07/2015 19:40

boiler may not be cheaper now but you may find that you simply can't get it done nearer winter. Boiler people fit things in summer and are flat out in winter fixing things.

also a new one will reduce your energy use. Of course you need to keep switching tariffs to pay less for the units.

decide quickly, you need to get quotes and place orders soon.

Original poster
cleoteacher · 13/07/2015 19:52

Tribpod- basically dh has own business and has taken on another new partner who is paying £3000 for some shares in the company. He is an existing employee who has been promoted and is buying a share of the company. This is on a 6 month trial period from oct so if didn't work out dh would have to pay money back.

Maybe being greedy but feel we could have it all if we wait until oct to pay off debt , get boiler on re-payments, and then use money to get car. Dh wants to get car on monthly re-payments which I am not keen on doing.

Debt is interest free and fil is very relaxed about payments as he's very comfortably off so dh argues pointless paying it off early.

OP posts:
Outwith · 13/07/2015 21:20

This all sounds awful - if someone is buying shares in a company, they're not buying you a boiler Confused. Isn't it supposed to be a cash injection for the benefit of the company?

Anyway, irrespective of that, there's no way I'd spend any money if there was a possibility that I might need to pay it back - I think if you might need to pay it back, then it's not actually yours.

sandgrown · 13/07/2015 21:24

Can I hijack and ask where you are getting a boiler interest free because we need one too .thanks

SanityClause · 13/07/2015 21:25

If the DH owns the shares, and is selling them, the money belongs to him, not the company, Outwith.

Outwith · 13/07/2015 21:27

Oh Blush, thanks Sanity. Sorry OP Smile.

Good luck making your decision - I think I'd hold onto it until I knew that I'd get to keep it before I spent it.

RandomMess · 13/07/2015 21:29

So debt is interest free so that's fine ignore it.

Boiler - how much cheaper could you get it all done without using the interest free option? Shop around, it could be much much cheaper if you're able to pay for it up front and in the middle of summer, plus you will save on gas bills once the weather cools down.

I would hang onto the rest of the money until you're sure you don't need to repay it.

Bearbehind · 13/07/2015 22:06

It sounds very risky spending it on anything if you might have to pay it back.

What happens if you've spent it and the 6 month trial doesn't work out- how would you pay it back?

Is the trial for both parties ie could your DH want to carry on with this person but they decide they want out and therefore want their money back.

It sounds like you need to forget this money even exists for 6 months until you know it's yours.

Original poster
cleoteacher · 13/07/2015 22:09

Randommess I agree, dh seems to think this is an amazing deal but I am not convinced. There must be some catch or why would it be in their interests to do it. We are getting them to quote and also getting another quote too. Going to look into British gas etc deals too. Yes, hoping bills will come down too.

Talked to dh and going to get quotes on boiler and either use money to pay for boiler and any left over towards debts then save for other things. Or get interest free boiler and put towards car.

OP posts:
RandomMess · 13/07/2015 22:21

Well definitely get some quotes. I am amazed at how low our gas bills are with our new all singing and dancing boiler and unvented cylinder thing.

The poster PigletJohn would probably gladly tell you what you really need for your size of property etc and what approximate costs should be so you know you're not being ripped off.

Boiler technology has come on such a long way.

Original poster
cleoteacher · 14/07/2015 09:29

Thanks random. We re hoping our bills come down too.

How can I contact piglet about our boiler?

OP posts:
Original poster
cleoteacher · 14/07/2015 09:33

Guess trial is for both parties. Not asked dh and not thought about it like that if I am honest. Very unlikely other person would pull out as he wanted shares in the company with promotion so that he was invested in the business itself and kind of as an incentive to really make the business work.

OP posts:
Original poster
cleoteacher · 14/07/2015 09:34

Business always has a certain amount of money in the account as a buffer for quiet periods so it would get paid back out of that if needed and then that account would be paid back with a reduction in dhs wages over a few months

OP posts:
Original poster
cleoteacher · 14/07/2015 09:38

Sorry for multiple posts.
Sandy- its called glow worm. 2 years interest free actually, not 1, my dh has informed me.

OP posts:
Viviennemary · 14/07/2015 11:01

I'd say a new car was probably your biggest priority. So I'd either pay of your debts first. And then start thinking about a better car. I wouldn't be in a great rush to spend the £3K immediately. But I'd wait to see if the money has to be paid back first. Better to err on the side of caution than get into a mess.

RandomMess · 14/07/2015 13:21

You could send PigletJohn a begging request either by MP or perhaps post on the end of his corner unit opinion seeking post Grin

[http://www.mumsnet.com/Talk/property/2415576-kitchen-unit-pull-out-corners]

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