Advise Please

MonkeyHanger
MonkeyHanger Posts: 5 Forumite
First Anniversary Combo Breaker
in Debt-free wannabe
Morning,
I have a situation where I have a £320 month Car loan which finishes at the end of March 2015, Nearly £5,000 on a Credit Card, paying roughly £50 Interest, and another Credit Card with about £4,200 on which is interest free till about Sept 2015.
I have some Work Shares which can make me some good money, if I can Cash in, i.e. put £9,000 in over 3 three years and currently at todays share price, could cash in at £24,000, but the signs are that these will go even further!
Do i cash in, and pay all debt off, or extend my loan which is nearly finished at rate of 4.9%, and keep my nest?
What would you do in my situation?
I want to be debt free!
I'm fairly comfortable with regards money, but one of these cards £50 month interest have came out of the blue!!

King Regards

Comments

  • sourcrates
    sourcrates Posts: 28,848 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    MonkeyHanger wrote: »
    What would you do in my situation?
    I want to be debt free!



    No brainer, shares can go up, or down, they could bomb out completely leaving you with nothing.
    Cash in the shares, pay off the debt, job done, move on.:)
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • DawnW
    DawnW Posts: 7,439 Forumite
    Name Dropper Photogenic First Post First Anniversary
    Not meaning to be nosy but why would you want to extend the loan if it is nearly paid off?

    And could you sell some of your shares, ie enough to pay the debt, and keep the rest?
  • hohum
    hohum Posts: 476 Forumite
    First Anniversary Combo Breaker
    edited 23 November 2014 at 2:06PM
    How much do you have available to you in shares right now? Not what they could be, what they are?

    If you have enough I would look at paying off £5k of the credit card. I would throw the monthly repayment freed up at the 0% card. When the car loan finishes I would also put that amount towards repayment too.

    What does the credit card rate jump to when 0% finishes? What did you plan on doing when this expired originally?

    If you are comfortable with money, you might be able to reduce your debt without reducing your investments. Have a look at a snowball calculator to see the best way of structuring repayment. Play around with what you send to the debt to see how it reduces the term and the cost. You could also review your outgoings to see if you could save. There are lots of reasons for consumer debt (new kitchen, relationship breakdown, living beyond means) but if you're not clear how you got here, and you feel you have adequate income, then I'd look at outgoings!

    EtA this is something you have done or considered before? Are these the same debts from 2011? Did you cash in shares to pay back your loan in 2012 (you posted about this before) sems a bit of a pattern..
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