I am very fortunate to be in a position where I'll be getting a little windfall sometime this year. Not a huge amount to some people, but a lot to me. I think I know what's best to do with it, but just wondered if there's anything else to consider? It's going to be about double what all my non-mortgage (ie. CC/loans/o'draft) debt is. I assume it's a no brainer to just pay all that off straight away. With the rest I thought I'd put a bit away for an emergency fund, 3 months salary ish, a bit for each of the kids, then some savings or home improvements. Anything else I should consider that would put it to better use? The sum will only be 40% of my outstanding mortgage so I can't clear that. Mortgage doesn't worry me greatly, I've got a good 30 years plus of working life ahead of me. Any advice appreciated. Thanks.
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Windfall advice
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Posted 1 year ago #
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Put in Red
Posted 1 year ago # -
Clear the high interest debt first for sure unless there are some 0% deals in there where you can make more elsewhere, 3 months Salary is good practice. Seems a very level headed approach. But make sure what ever caused the CC's and OD to build up are nipped in the bud so that they do not creep back up!!
Depending on whats left you can use your isa allowance and maybe risk abit in a shares isa but only if you can lock it longterm and not need it quickly as shares shouldn't really be view short term.
Posted 1 year ago # -
CC's are all going back once they're paid off. A lack of foresight when I left school and started uni, the resultant debt has been a monkey on my back ever since. Not causing me a problem, but holding me back a bit. I don't want to be in this position again, and a chance for a financial clean slate as it were isn't going to come round again for me. The wise old monkeys who tell you to save up for it if you really want it know what they're talking about.
Posted 1 year ago # -
I'd spend a little on loose women, a bit on wild nights out and probably just waste the rest.
Posted 1 year ago # -
You don't need advice, do what your planing and learn from your previous mistakes.
Oh, buy couple of nice bikes
Posted 1 year ago # -
Might have to buy a big shed first to hide them from her
Posted 1 year ago # -
Alvin Hall gives adive on this sort of thing and so do Motley Fool
Posted 1 year ago # -
SilentSparky - Member
Put in Red
FFS that's the most stupid comment ever.
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.ALL ON BLACK!
Posted 1 year ago # -
Depends what you're paying on your mortgage.
If you're paying a higher rate of interest than you can get through saving then pay some off. Otherwise put some where you can get it once interest rates go up and pay off when they do.
Anything you pay off your mortgage now you get back + more later.
Personally I can't wait to see the back of my mortgage.
3 months salary in hand is a good idea though - but given that you'd managed to build up other debts on top of your mortgage, are you sure you won't just be tempted to spend it? If you think you will, then put it into the mortgage now.
Posted 1 year ago # -
I can overpay up to £500 a month on the mortgage. I'll look into that a bit more, but I wanted to keep a bit by to get the house shipshape. I'm not really worried about running debt up again, although I hope I'm not being complacent. My attitude to money now is a world away from what it was 12 years ago, when I turned up at uni and gladly signed up to everything they offered - interest free overdraft, credit card, student loans. Entirely my fault of course, but I no longer have the same 'oh I'll worry about that in the future' attitude I had then. As I said, it's my one chance for a clean start as it were, and I've no intention of being indebted to anyone again without very good reason (mortgage aside), it just feels like a burden now.
Posted 1 year ago #
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