What would you do?

So I have a very controlled debt which is good debt, it’s 3500 and it’s @0% for another 15mths, I was planning on paying off £1000 but as I see the stock market has fell slightly so shoud I make the minimum payment and buy FTSE shares shares to the value of £1000 and sit back waiting to collect my winnings or should I stay in my extreme OCD debt to £0 plan. Obviously I’m aware the value of stocks can go up and down yada yada yada.

Yes, in the very unlikely event that the would has a full on melt down and we all go back to living in caves I guess I can afford to lose the £1000 but it would be a right kick in the nuts if I did.

How much would you kick yourself if you lost the £1K and still had £3.5K debt?

Are you easily able to pay off the £3.5K in the 15 months 0% interest period if you do lose your investment?

This is what I’d ask myself and I know I wouldn’t be comfortable investing money whilst I had debt.


Sit back for 5 years minimum?

You guess? Either you can afford to lose it or not? We’re not even in melt down yet, this is just the warmup.

If you aren’t certain then don’t do it, and don’t invest on a whim because prices have gone dont a bit. Invest with a plan.

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My advice is pay off the debt.


So we’ve gone from 7500 to 6000. I would agree its just warming up, we could see it back down in the 4000s over the next couple of years.

Im only really comfortable with it as it’s 0% and my thoughts are that I could bail out if it continues to slide, so I would aim to cut my loses if it dropped to say £800ish, I know it could take a massive hit and be way below the £800 in the blink of an eye.

Maybe I should just dabble with £100 and see what I can learn.

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I’m not a financial advisor and can’t give advice, however what I would do is stick the £1k in a Marcus account (or other easy access high interest account). Collect interest on it for the duration of my 0% period while paying back something every month.

That way if I manage to pay off the card without the £1k I’m good, otherwise if the :poop: hits the fan, I still have a guaranteed £1k safety net to give to my lender

It wouldn’t be the end of my world but if be keeping an eye on it and bailing out if the value dropped below £800, so if like to think I’m only really risking £200…

I would just pay off the debt.

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Ok in that case do not invest that money at this time. It’s clearly not worth the risk to you.

20% loss is nothing

This is appoarach I used reccently to clear a 0% credit card, and its what I’d do here.

I would say if you chucked in £1000 now at 6000, and it continued down to say 4000 over the year, whats that 2/3 so £666 :see_no_evil:

If you’re thinking of buying now and selling when its a decent amount above 6000 say to 8000 you might be waiting quite a few years to make that profit. :man_shrugging:

Got have a bit of luck to buy the dip and make a short term profit.

Pay off the debt, and then start investing

On the balance of pure probability I would personally pay off the debt(On the probability that you are not likely to make a profit on shares)
IF you were thinking of investing ,I would also not buy shares I’d look at NSI premium bonds( I know the odds are reducing etc.) But it would be a low risk investment.

You might as well ask: Should I go down the local casino and put £1k on red and sit back waiting to collect my winnings. You know what the answer is.


Lots of experts say that stocks haven’t reached bottom yet. I believe this to be true. If you look at other countries - Korea, Italy, Spain - they’ve got to a point where lockdowns of various degrees have been effected. I don’t doubt that at some point the UK government will have to effect a lockdown of part of the country here also. At the very least, there will be 1,000s more cases of Covid-19 to come. The government’s strategy has very much moved on from ‘contain’ to ‘delay’. Meaning, I think, when they delayed effects do hit us, the FTSE will drop again.

In your situation, I would concentrate on the debt. Maybe do some reading in the meantime on investing. But buying in now is the wrong time, and buying in because you’re looking for ‘winnings’ is the wrong reason for buying in.

If nothing else, remember - markets go down fast and recover slowly. Even if you leave it 15 months before you enter the market, you will (hopefully!) be entering a rising market and still make gains.

tl;dr, be cautious, be sensible, don’t invest without doing your research.


NS&I premium bonds have an effective interest rate of 1.3% now I think it was. I’d save a bit of trouble and open a Marcus savings account (as suggested above) instead.

(Full disclosure; when I had some premium bonds my return was awful, so I’ll admit I’m not unbiased)

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It really depends on the availability of surplus funds, need for liquidity and your attitude to risk.

Not advice, but an opinion:

  • if you don’t need the 1K for the next two to five years, and
  • will be able to cover the debt in 15 months without this 1K then putting it into a S&S ISA in an ETF could work.

Personally, I’d pay £250 (£3500/14 to give me a months buffer) into the card each month and move the remaining surplus (If any) into a savings fund. This fund could be in cash or S&S based in my need for liquidity in the future.

Full disclosure my return has been good so hence the NSI suggestion :rofl:

Pretty much this.

The combination of a price war on oil; the evolving picture of COVID-19 that has prompted some banks to defer mortgage payments in Italy; casual/gig workers potentially defaulting on their debts because they can’t work in lockdown etc; the S&P500 being full of over-valued & highly leveraged companies --then there’s the end of the transition period at the end of the year. I don’t think we are anywhere close to reaching rock bottom yet, but I don’t see things improving markedly either.

Pay off the debt --now is the time to de-leverage.

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Premium bonds - my return has been 1.8% for the year, tax free, £25 prizes every time, but every draw the chance for something bigger.