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Splurge dilemma

Hi everybody. I got an unexpected £500 from work recently, and it's burning a hole in my pocket. My options, in current order of preference, are as follows:

1. Buy a new shed to house my growing collection of bicycles. The current one is rammed and has a resident rat.
2. Add to my growing collection of bicycles by putting it towards a 2009 Cannondale Slice 105 (end of season sales are bringing it temptingly near £1,500. Hmmm, Slice).
3. Buy a bling new LCD TV, get Sky HD and sit on my backside with the wife watching crap and eating crap.
4. Do the sensible thing and pay off a chunk of mortgage/credit card debt.

I know I should go for option 1, and 3 and 4 are looking less attractive with every passing day. But option 2 keeps chipping away at the back of my head. I have a 2007 Cannondale CAAD5 105 which has served me very well over my first two seasons in triathlon. Nothing wrong with it. But the Slice looks so cool. Plus, I'm sure to become as fast as Chrissie and qualify for Kona on it!

What would you do?


  • ZacniciZacnici Posts: 1,385
    Pay off a chunk from your credit card as that is the biggest money eater using an online interest calculator http://www.dcmmoney.co.uk/credit-card-d ... ulator.asp and assuming an apr of 23% and that you repay minimum of £5 month it will take you 3 years to pay off £500 and your interest charge will be £691.

    Then up your mortgage by £500 and at 6% interest it will take 80 monthly repayments and the interest charge is £82.77; use the £500 to go for option 2 and the £600 saved in interest will buy you a new shed and most of a new set of wheels.

    I am sure your WAT/GAT officer will approve
  • Share some with the wife. It will pay off in the long run.
  • ZacniciZacnici Posts: 1,385
    On a serious note IMHO pay off the credit card, just look at that online calculator - at least Dick Turpin wore a mask.

    Also if you still have a balance and paying interest see if you can get the balance transferred to a special offer 0% card (you will pay a transfer fee 3% ? ) and pay the balance off over the offer period. That will give you a breathing space. Then cut the bugger up, you only need one credit card. Failing which get a loan for a lower APR, you will save money in the long run.

    Serious head now off.
  • Thanks for your sensible replies, guys. My credit card debt is already on a 0% deal, and my mortgage rate pretty low. Not too worried about either of these.

    Also, as the £500 was a kind of performance reward, I'm more tempted to treat myself than do the right thing. I'm sold on the Slice now. It's just so cool, plus it's at least six months since I bought myself a new bike! And with a bit of jiggling, it should fit in the existing shed.

    I could wait for my company ride to work scheme to come round again next spring, and get a decent reduction off a TT bike. But the savings on the 2009 Slice are pretty much as good as I would get with the tax etc knocked off.
  • wyno70wyno70 Posts: 189
    If the card and mortgage aren't a problem then it's a no brainer, get the bike, specially if it's a 'bonus'.

    If you sold the old bike and used the bonus, you'd be well on your way to the Slice.

    Go on, you know you want to. Seems other posters are being far too sensible, bike wins everyday for me. If you don't you'll always wish you did!!!!
  • shadowone1shadowone1 Posts: 1,408
    buy the bike... do a balance transfer on the credit card and pay no interest on it. Cut the thing up and never use it again.

    If you do need another CC then get a virgin credit card, once you've got it call them up and ask them for a low rate for life. They generally give you a rate of circa 5-6%. I know this cause I do it. I've hardly paid any interest on my cc for ages.

    Why pay them the full whack when a bit time and using Martin Lewis's tips you can whack the interest right down.

    The bike will give you opius months of joy, so go for that.
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