Around two years ago, after working and living in France for a year I came back to the UK and was £11,000 in debt due to 2 credit cards and an Apple loan for some computer equipment. On top of that, I bought a £40,000 car on finance, with large monthly repayments over 3 years, although its a lovely car and a head turner, its one of my biggest mistakes, I do not regret it tho because I have learnt the hard way, never will I get a car on finance again. You soon get bored of it when the non affordable monthly payments start rolling out.
Cut forward to the present day and this is my current financial situation barring the car finance which I have a tiny bit under a year left to pay:
Credit Card debt: £1150
Apple loan: £507 (this is a quoted settlement figure)
The credit card debt is 0% until December 2015 (it was a good rate balance transfer). The Apple loan is 19.8%.
I currently live with my mother and have been saving to get my own house, although with paying off debts, this hasn't advanced as much as I would have liked it, it's a start tho:
House savings: £2000
However, I have £0 in my rainy day fund.
This month I got an extra £985; this is due to a tax rebate. I don't want to 'just spent' the money. I want to do something with it that will make a difference to my goal of getting rid of those debts and as you can see this will take a large chunk of the remainder off.
Whats the best way to do it? Pay off the bulk of my credit card, focusing on the remainder of the credit card and Apple loan in the next couple of months, put it in a rainy day fund? Pay off the Apple loan and the rest in my rainy day fund? There are so many options and I'm confused as to what the best option is due to probably over thinking it. But I really didn't want to under think it.