Hi
I have recd encashment of 42,000 euro
I have tracker mortgage left of 30,000 euro
I have credit card debt of 4,000
College fees 3000 due this yr and next year 6000
Need to replace old car and spend. 8000 on newer model
Should I pay off mortgage with the money or get car and pay bills etc
Husband hoping to retire in 2 yrs on public service pension. I work part time
Grateful for any advice!
Once you spend these funds on reducing your mortgage they are gone!!! You will need to examine your ongoing income/outgoings in more detail before making your decision to partially redeem your mortgage. far more information would be required on your future income/outgoings before appropriate advice could be given.
Iff you have the financial discipline to ring fence the cash and not blow it, then, for now, just kill the CC debt and sit on it for now, assuming the tracker interest rate is low.
Having said that, I would query: Need to spend 8k on replacing car:
if you didn't have the mula would you borrow for it?
If not then why spend cash on a depreciating asset?
Iff you have the financial discipline to ring fence the cash and not blow it, then, for now, just kill the CC debt and sit on it for now, assuming the tracker interest rate is low.
Having said that, I would query: Need to spend 8k on replacing car:
if you didn't have the mula would you borrow for it?
If not then why spend cash on a depreciating asset?
Present car is over 10'year old. Worth nothing and clutch about to go. Won't get nct. Need a car. To borrow for car surely interest rates higher than tracker?.
Present car is over 10'year old. Worth nothing and clutch about to go. Won't get nct. Need a car. To borrow for car surely interest rates higher than tracker?.
probably costs you 1000 max for everything to get it through NCT. Unless you defo know that clutch is about to go (slipping already) I wouldn't bother, which probably saves you half of that 1000 euro.
To keep an old, paid for, used car, on the road and do standard-wear-and-tear repairs is IMO *always* cheaper than buying a newer one.