43 yr old with redundancy payment, how best to use it?

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Personal details

Your age: 43
Your spouse's age: 43

Number and age of children: 3 kids 9, 12 and 14

Income and expenditure
Annual gross income from employment or profession: 75k (have secured new job starting Jan 2025)
Annual gross income of spouse/partner: 45k

Monthly take-home pay: 6k jointly

Type of employment - e.g. Employee
Employer type: private company.

Summary of Assets and Liabilities
Family home value: 310k
Mortgage on family home: 210k
Net equity: 100k

Cash: 31k

Family home mortgage information
Type of interest rate: Fixed 3.1%

Remaining term: (25 years)
Monthly repayment: 1080

Do you pay off your full credit card balance each month? No, minimum payment. Balance is 17k

What specific question do you have or what issues are of concern to you?

I have been made redundant and will be receiving 31k payment shortly. We want to convert attic on our 3 bed semi and have been quoted 30k. Are we best paying off 17k credit card debt, lodging remainder in credit union and borrowing against that to fund conversion or should we pay off conversion in full and continue paying off credit card debt?
 
Not to put too fine a point on it, 17k is a huge credit card debt, you need to address the source of it, e.g. is it lack of budgetary control or was it a once-off emergency?

In addition to that, I think you need to have a rainy day fund.

Then I think you can look at how to fund an attic conversion, possibly through a remortgage/low interest loan, but your 31k should be used for the above first and foremost.
 
If you are trying to do better. I would also tackle the debt. Then look at what you can do to finance the conversion. I would give it a few months before I do anything with the remainder. Some jobs don't work out as planned. Get into the job, see how it works out first.
 
Clear the card debt AND request the limit to be reduced to 2 or 3k.

If you have 2 or more cards, reduce it to one and use the debit card.

My guess is the interest on the card is about €350 - €400 a month.

Also is the attic essential? Would a garden room be better used?
 
I presume attic is for a 3rd kids bedroom, so that will be a big deal for the kids. Well worth doing. As above though you would be crazy to keep the credit card or any debt before it, pay off credit card debt asap. Then as you say 30k loan from credit union for the conversion, but make sure and keep the 14k balance of redundancy until conversion is compete for contingency in the conversion cost. I’m sure you are aware but that amount of credit card debt shows you or yours are living way beyond your means, which then puts pressure on you massively when it comes to things like a job loss as I’m sure you’ve found it to be a big eye opener.i wouldn’t get limit reduced, I’d get rid of credit cards altogether.
 
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