Over pay credit card or loan?

Ccarter · 23 October 2014 at 12:02PM

Hello,

I have recently cleared my lowest balance highest rate credit card. Yippee.

I still have £2800 on a 0% credit card until Nov 2016 and a loan for a kitchen is 97.36 a month for another 18 months. This has an interest rate of about 5%.

I can't over pay the kitchen but can request a settlement figure.

Would you put aside payments and then pay the kitchen off earlier as this is the highest rate debt?

Thanks for any advice

Pixie5740 · 23 October 2014 at 12:28PM

Does the kitchen loan have an early repayment charges?

PinkPoppies · 23 October 2014 at 12:36PM

So, interest included there is about £1750 left to pay for the kitchen?

How much do you have available to overpay each month? Do you think you can pay off the kitchen AND the CC before your 0% period runs out? If so, it makes sense to save for the kitchen settlement and then hammer the CC afterwards... but if not I'd definitely focus on getting rid of the CC first, while it is still on 0%, and let the loan tick along as it is.

Ccarter · 23 October 2014 at 12:43PM

No-there are no early repayment charges.

Yes that's the bal approximately. I think I could pay it all off by the time the card ends in 2016. Hope so anyways!

Thanks both

GettingOrganised · 23 October 2014 at 9:43PM

Hi, pinkpoppies advice is spot on. Good luck on your journey!

Over pay credit card or loan?

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