Decisions

Say why you chose your option, the highest vote that is what I will choose

Bit of both?

Debt should always be a priority especially when it’s one with high interest rate. Pay it off quicker and then you’ll be able to save more (as long as you don’t rack up more debt of course). Your son waited for so many years, he can wait another one. Edit to add: he is also old enough to understand the situation.

To go on a £5k holiday, putting yourself in to more debt whilst £6k in credit card debt would be really stupid. You adjust to your financial circumstances, delay the holiday or do something low cost instead.

Definitely the debt! Although, don't put yourself in more debt when u already have debt!

I think if you have any spare money, you should always use it to pay off any debt.

@Alice ok £1k to the holiday and £1k to the credit cards debt?

Is the holiday already booked?

I would pay it all to the credit card if it’s wracking up interest. Can you pay the holiday in instalments? X

@Caroline no

@Chelsea yes can pay installments

So would you all say it's best to pay 50% 50% £1k to the debt, £1k to the holiday and then pay installments to the holiday and then keep paying off the debts each month. Yes the debt is incuring interest😔

I would pay the credit card off, can you look into a 0% balance transfer? I always put my holidays on a 0% interest credit card and work out how much I need to pay a month to pay it off before the interest free period ends x

@Caroline there's too much debt I tried but was refused on the 0% I even if I use the money for the debt I still need to pay the rest of it which will take me a year to get to £6k it's best to pay 50% 50% £1k to the debt, £1k to the holiday and then pay installments to the holiday and then keep paying off the debts each month. My plan is to pay £400 to the holiday each month and £400 to the debt each month 😫 I hate the debt

So tomorrow I will probably pay £1,000 to the holiday and £1000 to the debt At least I will have the satisfaction of knowing i have paid towards the holiday and towards the debt 😫 I can't pay anymore than £400 a month (well I could pay £800 towards the debt but that would mean no holiday 😒) would anyone agree with this to pay £400 a month rather than £800 a month

Personally I wouldn’t be booking a holiday if I had a credit card to pay with interest. I know it’s a special one you’ve been looking forward to but it really does make bad financial sense to be booking it now x

Personally, no. I would say pay the £800 a month and you’ll clear the debt faster than paying less… I would prioritise a 6K credit card debt over a holiday, sorry to say. I think most people in this country are desperate for a holiday, but it’s a terrible financial decision to book a holiday whilst in that much debt as you’re essentially just going to put yourself in further debt. I understand your son will be 18, but he’s also old enough to understand there’s a major cost of living crisis and that things cost money. Maybe delay the holiday and take him for his 21st. Or when he’s 19 or something, it can still be a special holiday regardless of age. For context , I was always promised a special holiday by my parent, and I was terminally ill at the time. I didn’t get to go for my 21st birthday because of finances and life just happened, but I went at the age of 25 instead. Was no less special, the promise was still fulfilled and had a great time.

I would also clear the debt first

I believe every single person apart from one is telling you to pay off the debt and skip the holiday, not to pay 50-50%. 😐

You are all right ladies. I'm going to pay £2k tomorrow I'm going to call the credit card company and I will pay all the £2k tomorrow. It has to be done. Thank you ladies. It's been such a hard time and I have been so scared to open letters and stressed but I need to just pay it. I got the £2k because my workplace owed me money and I just wanted to feel good but I will feel even better to know I'm finally paying off the debt. I just don't want to live in debt any more and from now on if I do get a credit card it has to be 0% or nothing at all

Tomorrow I will come back here and tell you all that I paid it. It's just so hard these days. I got into a situation and it lead me into taking out credit cards and it just went down hill from there. I was working and then lost my job (got a new job now) and then I was using the credit cards to live on and that job has owed me money and I was paying rent in London and it was so expensive and it just became a mess for me. My son gets upset every time I speak about money aswell😔

@Danni your right I need to think sensibly This is why I like peanut because sometimes you need to come and speak to people to really see things clearly. I'm a single mum and don't really have people to speak to and sometimes that in itself makes us make decisions we shouldn't be making that's why it's good to reach out and speak to see clearly

After I pay the debt can I cut the card?

I would ask them to shut your account down once fully repaid if you don’t want it, so then it’s reported on your credit file the debts cleared and account is closed x

I’m glad your have decided to take steps to pay off your debt. Make sure to close down the account fully otherwise there could be maintenance fees that will still be charged towards the card. I would also suggest, once it’s been paid off to set up an emergency fund, enough money to cover your bills for minimum of 3 months (6 is best). Once you’re debt free and have emergency savings you will feel a lot better and it will be more satisfying than any temporary pleasure you can spend money on. Financial security is so important! Also I would advise you to check out Fiancial Audit with Caleb Hammer, he is from the US and sometimes a bit overboard but breaks down the financial situation of his guests and helps them build a plan how to pay off their debts. It can give you a bit of stimulation to create a plan of your own.

@Danni thank you yes I will definitely aim for this Oh ok thanks is he on YouTube?

@Niomi ok and then after that can I cut the cards when everything is paid

I see you're going to pay it off and that is absolutely the best thing to do. Pay it till it's zero. I would not close the credit card account if you're not being charged for it because A) you may need for emergencies and B) it counts positively towards your credit score especially if you spend and pay it off every month BUT do not rack up debt you can't clear every month again, you are just paying interest you could have otherwise saved. Someone else said start putting away an emergency fund again - great idea. If you play it wisely you can do this holiday for his 21st.

If you pay £400 towards a holiday in May that would only be half of the total cost of holiday, plus depending on how you book remember you will be needingto pay the full outstanding balance anywhere from 12 weeks before departure xx

@Keara you mean the £400 deposit. The holiday is £5k and this would need to be all paid for by March. I wouldn't be able to do it that's why I had to choose one or the other and as hard as it will be iv chosen to pay the debt. The debt is £6k. After tomorrow the debt will be £4k After tomorrow I'll be paying £800 a month towards the £4k debt. I'll keep going till I'm debt free It won't be easy but I have to close my eyes and pay it off, when it's all paid I'll save for the emergency fund. It's going to be a good 6-9 months of grinding, no fun things, no eating what I want, no going out unless it's free, cost of living is high, Xmas around the corner I'm stressed because everything will be cut now but I need to be debt free

Debt = 6k, pay in 2k, debt = 4k, £800/per month, debt = 0 in 6 months (assuming 25% interest). No brainer, tonnes of interest saved. At this point open a high interest savings account and put away £800/month. In one year you will have £9600 + interest earned.

Definitely prioritise the debt. As mentioned before, your son is old enough to understand and the need for a delay or change of plans. There are definitely cheaper holidays out there, even to the Caribbean. Have a bit of a rethink of your plans.

Thanks for the votes 185 votes

I paid the debt of £2k🥳🥳😫😫 the joys of debt 🫣

£4k to go with interest ofcourse still got to know the interest but yeah £4k to go I will leave this poll open because you ladies are making me hold myself accountable and when I feel I'm loosing my way I'll look back at this post. One all the debt is paid I'll close the post

Question: once all debt is cleared my credit and accounts are closed (not removed off the credit file) utilisation will be £0.00 will that affect my credit?

You shouldn't cancel your credit card. They suggest you spend a small amount on it every month and pay off every month. This helps your credit score. Obviously not now but when you've brought it down to zero.